FX.co ★ Tin Surges to Another Record High

In January, tin futures in the UK soared to an unprecedented $56,800 per tonne. This peak reflects strong support for base metals and assets linked to the speculative surge in AI investments. This year alone, the metal has experienced a 40% increase, driven by its critical role in soldering for electronic goods and data centers. This demand has led investors to adopt long positions as a proxy for speculative investments in AI technologies. Last week in Shanghai, trading volumes surpassed one million tonnes within a single session—a figure that more than doubles the annual global physical usage. This surge has prompted authorities to caution against indiscriminate trend-following and to restrict some high-frequency trading firms from market participation. Meanwhile, global physical supply remains in flux as Indonesian President Subianto has mandated the shutdown of 1,000 illegal tin mines in Sumatra, which may reduce output from the world’s second-largest producer.