HANOI Tin prices in London rose on Wednesday to hit their highest level in more than a year, as stockpiles fell to the lowest in nine months, while short-covering across base metals also lent support.

Benchmark three-month tin on the London Metal Exchange (LME) rose 4.4% to US$32,530 per metric ton by 0830 GMT. The contract had climbed to US$32,745 earlier in the session, its highest since June 2022.

The most-traded May tin contract on the Shanghai Futures Exchange (SHFE) closed 5.8% higher at 252,210 yuan a ton. It hit 252,410 yuan earlier in the session, also its highest since June 2022.

LME tin inventories fell to 4,285 tons, the lowest since July 2023. Stockpiles have dropped 44% since the beginning of the year.

The LME cash tin contract was traded at a US$26/ton premium to the three-month contract on Tuesday, indicating the tightness of near-term supplies.

In China, the world's biggest tin consumer, inventories in SHFE-tracked warehouses have been accumulating. Stocks hit a record high of 12,823 tons last week, latest data from the exchange showed.

Analyst Tom Langston from the International Tin Association said in a note that there were divergent market dynamics between China and the rest of the world.

The rise in tin prices was also helped by a rally in other base metals. A trader said short position holders covered their positions ahead of the release of US inflation data later in the day.

LME copper advanced 0.8% to US$9,490.50 a ton, aluminium increased 0.8% to US$2,480, nickel was up 1.2% at US$18,430, zinc climbed 2.5% to US$2,778, and lead rose 1.1% to US$2,184.50.

SHFE copper advanced 0.7% to 76,800 yuan a ton, aluminium climbed 1.3% to 20,470 yuan, nickel jumped 1.9% to 139,680 yuan, zinc rose 3.4% to 22,605 yuan, and lead increased 1.4% to 16,805 yuan.

  - Reuters