NEW YORK Delivered
premiums for Grade A tin have held steady over the past two
weeks despite a run-up in exchange prices as market sources
reported limited activity in the second half of November.
"The last two weeks of November
were very slow, though people came back to the market" Monday,
one trader said, citing both the Thanksgiving holiday as well
as consumers unwillingness to build inventories before
the end of the year.
"Its so quiet, we
havent really been looking (for any tin)" for prompt
delivery, a source at one alloy producer said, although he
booked some forward material for delivery in the new year at
existing spot premium levels.
The producer source said he
anticipated that the next two weeks would be relatively busy
ahead of the expected seasonal slowdown in the second half of
Premiums for Grade A tin
remained at between $600 and $750 per tonne Monday afternoon,
according to both buyers and sellers.
Three-month tin on the London
Metal Exchange ended Tuesdays official session at $21,750
per tonne, a 4.3-percent jump from two weeks ago.
The sudden climb could prompt
some tin buyers to hold off if they think the price is poised
for a downward correction, the trader said. "People may think
its too expensive," he said, but due to logistics and
freight costs he would not reduce delivered premiums to
counterbalance the rising price.
Consumers who required spot tin
over the past two weeks said demand has been relatively
unchanged and they have had no difficulty getting the material
they need, leaving delivered premiums with little reason to
change, tin buyers said.
"Theres really just not
been much change," a second alloy producer source said. He
added that amid limited spot activity, his negotiations for
contract premiums for next year are looking like theyll
put contract levels on par with current spot premiums.
While some consumers said they
anticipate the same for 2013 contracts, some negotiations were
said to be ongoing and could stretch into February.