NEW YORK Delivered premiums for Grade A tin remained unchanged over the past two weeks, as market players reported steady to subdued demand.
It seems like theres plenty of material around, one tin alloy producer told AMM.
Despite reports of some difficulties getting material into the Port of New York and New Jersey, market players in the region said that theyre having no problems meeting customer demand.
Minimal transactions were reported over the past two weeks, leaving delivered premiums for Grade A tin in the existing trading range of $600 to $750 per tonne.
However, one tin consumer reported receiving quotes for low purity Grade A tin at premiums as low as $425 per tonne. However, no transactions were reported at that price level.
Early negotiations for next years material suggest that premiums will likely be on par with current spot levels, sources said. The suggestion that material might be limited heading into the new year had premiums poised to rise heading into 2013, but sources said that lackluster demand over the last few weeks may continue or even worsen next year.
The feeling that Im getting from (customers) is that they may be looking at a slowdown on buying, the first alloy producer said.
A second alloy producer said that their negotiations for 2013 material are about $50 to $100 above last years contract premiums and comparable with current spot levels.
Everybodys always pushing for higher. But a lot of people are pushing for lower, too, the trader said.
The tin market remained in a backwardation on the London Metal Exchange Monday, with three-month tin closing at $20,500 per tonne compared with cash tin at $20,575 per tonne in official trading on the LME.