Tin drops to 23-month low

Print this page Posted on : 12-24-2008 by recycleinme.com

Dec. 23

Copper fell in London as inventories at a four-year high signalled demand expansion is slowing. Tin declined to a 23-month low.

Inventories rose 700 tonnes to 328,000 tonnes, the highest since Feb. 11, 2004, according to London Metal Exchange figures.

Copper for delivery in three months retreated $32 to $2,928 a tonne on the London Metal Exchange as of 11:31 a.m. local time.

The metal has declined 56 per cent this year.

There are big guns out there who think copper is going to $2,200 and it's a brave person who stands in their way, said Mr David Thurtell, an analyst at Citigroup Inc. in London.

Copper Inventories

Inventories of copper are building in Europe and the US and falling in Asia.

They are the highest since September 2003 in Europe, making up 48 per cent of the total, and the highest since June 2004 in the US.

Tin dropped as much as $25 to $10,280 a tonne, the lowest since Jan. 10, 2007, after inventories increased 125 tonnes to 7,775 tonnes, bringing the gain to 63 per cent in the past six sessions.

Prices may fall to $9,004 a tonne, the lowest since October 2006, after slipping below trendline support, Barclays Capital said last week.

Aluminium rose $8 to $1,566 a tonne and lead advanced $2 to $910 a tonne. Zinc fell $10 to $1,170 a tonne and nickel declined $75 to $10,225 a tonne.

Source : Business Line