Global tin prices way up
By Dave Hannon
Purchasing
February 21, 2007
Tin prices have hit new highs on the London Metal Exchange, fueled by concern over supply shortages from the two biggest producing nations.
China, the world's biggest producer of tin, said it may cut exports of the refined metal by 10% this year, further depleting global stockpiles that are already at their lowest since November 2005.
“The rapid growth of the domestic market in China has reduced the amount of tin exports,” said Peter Kettle, head of research at ITRI in a recent Bloomberg report.
And government crackdown in Indonesia, the world’s second-largest tin producer, on illegally mined ore have led to the closing of 20 smelters in October. And as recently as last week, authorities shut down most of PT Koba Tin's operations after an investigation of sourcing illegal tin ore and operating outside its mining area.
Tin prices closed on the London Metal Exchange yesterday at a new high of $13,450/ton.
“Tin prices will move higher if Indonesia further tightens its exports,' said Ping An Securities Co.'s Peng Bo.
Global tin consumption expanded 9% in 2006, according to ITRI, a producer-funded tin organization in St. Albans, England.
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