.jpg)
2 hours ago
3
Article content
(Bloomberg) — Base metal markets roared higher, extending a powerful start to the year’s trading, with both tin and copper rallying to records.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
Tin — used in electronics and packaging — surged as much as 6% to $52,495 a ton on the London Metal Exchange, taking gains since the start of this year close to 30% and topping a peak set in 2022. Copper extended its advance above $13,000 a ton, while nickel, zinc and aluminum also logged gains.
Article content
Article content
Article content
Industrial metals have boomed at the start of the new year, as investors bet on Federal Reserve easing, a weaker US dollar, and growth sectors like artificial intelligence and renewable energy aiding demand. The LMEX Index — which tracks the fortunes of the main six including copper and tin — is on pace to top the record that was set by the gauge more than three years ago.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
Tin is the least-liquid market on the LME, and can be subject to periods of dizzying volatility. A rush of Chinese investors into commodities has also fueled gains, with tin’s trading volumes on the Shanghai Futures Exchange reaching a daily record on Tuesday, before prices spiked by their daily limit on Wednesday.
Article content
The metal’s use in soldering means it has long been viewed as a proxy for the computing sector, and funds have piled into the market in parallel with strong investments in AI and data centers. As with other metals, supply disruptions have also spurred the bulls, with uncertainties over exports from second-biggest producer Indonesia still stalking the market.
Article content
China Optimism
Article content
The surge in trading volumes on China’s domestic metals exchanges has echoed inflows into local equities markets, which have lifted a broad gauge of domestic stocks to the highest level since 2015. Investors are broadly turning more positive on the nation’s financial markets for this year.
Article content
Article content
For tin, a major unknown is how much supply Indonesia will ship. A military-led crackdown on illegal mining in the main tin region squeezed flows last year. Exports dipped in December on-month and the outlook remains unclear, in part as the government has yet to approve mining quotas this year.
Article content
Despite the surge in prices, the tin market has yet to indicate physical tightness, with stockpiles held in LME-tracked sheds having risen to the highest in 11 months. In addition, futures are trading at a premium to spot prices, a structure known as contango that indicates near-term supply remains plentiful.
Article content
Tin traded 5.2% higher at $52,085 a ton on the LME at 12:13 p.m. Shanghai time. It also hit an all-time high on the Shanghai Futures Exchange, rising almost 9% to its daily upper limit at 413,170 yuan ($59,212) a ton.
Article content
—With assistance from Eddie Spence and Martin Ritchie.
Article content
English (US)