Feb. 17 -- Interest in the physical tin ETF (exchange traded fund) is starting to pick up. Following the launch of this product on 10 December last year, initial sales were very small, amounting to only 80 tonnes up to 30 January. However since then the total has moved up to 405 tonnes – all MSC tin in Malaysian and Singapore warehouses. Three new investor products were launched by ETF Securities Limited in December, allowing investors to buy physical tin, nickel and copper via securities traded on the London Stock Exchange. Products covering the other LME metals are due to be offered this year.
The growth in interest in tin is in contrast to the other two metals, with some initial holdings of copper and nickel liquidated recently. Copper holdings have fallen from a peak of 2,220 tonnes on 2 February to 1,350 tonnes last reported on 15 February, while nickel held has dropped from 402 tonnes to only 78 tonnes over the same period. The tin ETF warrants now account for 2.4% of all live LME warrants, while the copper and nickel percentages are only 0.3% and 0.1% respectively.