Tin hits record high on supply woes

Print this page Posted on : 04-24-2008 by recycleinme.com

Tin rose over 6 per cent on Wednesday hitting a record high on persistent supply woes, while copper prices were underpinned by a strike in Chile, analysts said.

''Both tin and copper are responding to the supply problems that are very evident,'' analyst Mr Kevin Norrish at Barclays Capital said, referring to concerns about tin output from China and Indonesia and a copper strike in Chile. Copper for delivery in three months on the London Metal Exchange eased $48 to $8,652/8,672 a tonne at 0942 GMT, after touching a record high of $8,880 last week. Dealers said they kept a close eye on developments in top producer Chile, which pushed prices 2.2 per cent higher in the previous session.

Three-months tin hit a record of $24,000 a tonne, rising 6.8 per cent, before trading at $23,700/23,900 against $22,475/22,500. Aluminium was at $3,115/3,120 a tonne, up $30, while zinc eased to $2,255/2,265, down from Tuesday's $2,270/2,271.

SEEN HIGHER

The tin market continued to fret about supplies from the world's biggest exporter and second-biggest producer, Indonesia. In addition to a crackdown by Indonesian authorities on illegal mining, trade data on Tuesday showed China, the world's No.1 producer, exported a meagre 366 tonnes in the first quarter. Tin inventories in LME warehouses dropped another 200 tonnes to 7,790, down 36 per cent so far this year. Lead fell $60 to $2,780/2,800 a tonne and nickel shed $200 to $28,700/28,900.

Source : Business Line