Tin Prices Rally to 18-Month High

Tin futures climbed to their highest price point since January 2015 on Friday as a retreat in the US dollar and stronger than expected Chinese manufacturing PMI added support to the metal which has already enjoyed a pretty impressive performance in 2016.
On Friday, the US dollar retreated after the Labor Department reported that the US economy added a smaller-than-expected amount of jobs in August, while major tin consumer China reported an increase in manufacturing activity.
Tin prices have climbed in 2016 amid a background of declining supplies. Chinese tin supply has decreased after environmental inspections resulted in the temporary closure of domestic smelters. Four smelters, accounting for 18% of China’s output, will remain closed for just over a month, and this should further tighten the market and contribute to lower supplies for the months ahead. Tin’s supply chain has also been impacted this year from Indonesian cuts, but recent data suggests that the country’s tin output is picking back up.
LME stocks of tin are currently around 4,460 tons, they are down about 20% in August. This is contributing to the commodity’s strength, even though demand prospects are mixed.
The metal is well supported from a technical perspective. In early trading, tin climbed as high as $19,285, the last time the commodity traded in this price range was January 2015. Even after Friday’s rally the commodity remains technically supported. The next level of resistance is $19,600, which is also the commodity’s 50 day moving average. While the metal could stall as it approaches that price point, a breach above could trigger another big rally.

http://www.economiccalendar.com/2016/09/02/tin-prices-rally-to-18-month-high/