LME three-month tin eased to $53,455/mt, effectively unchanged on the session but down from the weekly high of $55,400 reached on Wednesday. The correction was driven by profit-taking after the aggressive SHFE rally, with speculative longs reducing positions ahead of the weekend.
The pullback was orderly, with volumes declining 22% from Thursday's session. Open interest fell 3.1%, indicating that the move was driven by long liquidation rather than fresh short selling. The $53,000 level proved supportive, with buyers stepping in at that level in both LME and SHFE markets.
LME tin inventories fell to 4,215 tonnes, the lowest level since March. Canceled warrants rose to 28% of total, suggesting a significant portion of remaining stock is already earmarked for delivery. Available inventory is now at its lowest in 18 months.
The technical picture remains constructive despite the pullback. The 50-day moving average at $52,200 and the 200-day moving average at $49,800 are well below current prices. The $55,000 level is the next resistance; a break above on volume would target the April highs at $57,500.
Use the pullback to $53,000 or below to add coverage for Q3. The supply deficit thesis is intact, and inventory is at critically low levels. Limit orders at $52,500-53,000 are likely to fill. Avoid chasing the price above $55,000 where profit-taking is likely to recur.