Tin, which spiked to a 15-month high at $18,125/mt in intraday trading on the London Metals Exchange Monday, extended its subsequent move lower early Wednesday.
"Tin is up purely on technical buying, it broke through the $17,500/mt level and off it went, there was no fundamentals to support it," a fund manager said Wednesday, adding: "I think we will see it go all the way back down now", given there was no reason for the metal to stay at current levels.
Tin was bid at $17,550/mt at 1000 GMT, down $50/mt from Tuesday's close, having ended Monday at $18,000/mt.
It finished at $17,375/mt Friday before Monday's spike higher on the back of 956 lots being traded -- notable given it rarely trades above 300 lots per day. Some 148 lots had been traded by 1000 GMT Wednesday.
The metal, which had made repeated attempts to break above $17,400/mt since March, saw a drastic sell-off in May as Indonesian exports were stronger than expected. There has been no real sign of reduced supply coming out of the country, according to the International Tin Research Institute.
