Tin zooms to new high on supply worries

Print this page Posted on : 07-20-2007 by recycleinme.com

Prices of industrial metal tin rose just over three per cent to a fresh high on Thursday, boosted by supply worries, analysts and fund managers said. Tin was the standout performer at the London Metal Exchange, where other metals were steady, supported by a weak dollar and strong demand from China and other emerging economies.

Tin futures prices traded at $15,700 per tonne, up $775 from its closing price on Wednesday, and 36 per cent higher than at the start of the year. “supply issues continue to impact the market,” analyst Mr. David Thurtell at BNP Paribas said in a report.

Copper, quoted up $20 at $7,845 /7,865 per tonne, remained supported by ongoing industrial action in key suppliers Chile and Peru, compounding an already tight market.

CHINA GROWTH

Also boosting sentiment was the announcement by China, the world’s largest copper consumer, that annual GDP growth surged to 11.9 per cent in the second quarter from 11.1 per cent in the first three months, beating forecasts.

The data kept China’s economy firmly on course for the firth straight year of double-digit expansion.

Aluminium was quoted at $2,806/2,808, up $20 from Wednesday’s close and comfortably within its recent range. Nickel was up $450 at $33,200/33,400, lead was $34 higher at $3,270/3,290 and zinc was up $55 at $3,555/3,575.

Source : Business Line