On May 12, tin prices edged lower but remained elevated overall, having surged during the prior night session on the announcement of Peru's energy decree. High prices prompted downstream buyers to turn more cautious, with only very limited essential restocking. End-user consumption showed no improvement; May marks the gradual onset of the seasonal demand lull. Overall, spot trading was muted throughout the day. Peru's energy decree has yet to materially affect local tin mining operations, but rising energy costs may curb future output and poses potential pressure on the global tin supply. In the short term, the U.S April CPI data will shift market expectations for Fed policy, pushing the USD index higher and weighing on tin prices. Tin prices are expected to fluctuate at high levels with a weakening bias.
