Tin Market Turmoil
An unknown investor has boght up thousands of tons of tin last week, and has stored it in warehouses all over London. Reports are that basically the entire stocks of tin listed on the London Metals Exchange (LME) were acquired during the past week by that one buyer, who most assume is a hedge fund.
Some buyers of tin and other investors are whining about this, but the LME said the reason they are isn't because there's something wrong with the tin market, but because they guessed wrong as to the direction the prices would move, and it adds that they've been publishing the needed data to make informed decisions, so complaints are not legitimate.
AS far as the strategy of the mysterious tin buyer, they've either done it with the belief that the growing demand and acquisition of tin by Asian countries will continue to drive up prices, and so they bought the lot to take advantage of the real possibility, or an attempt to get some quick, short-term gains.
Although the secret tin investor has a dominant position at this time, and has a limited control of prices, they are playing a risky game that could backfire if they aren't careful. Sellers of tin are enjoying this period of time, but that will probably change some time soon, and there is some evidence that the tin buyer has already started selling its tin.
Tin demand is expected to rise to 320,000 tons this year, up from 300,000 last year.
Tin Prices Rising
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