Tin hits fresh all-time high as exports from PT Koba Tin dwindle
Source: AFX
metalsplace.com
Tin hit a fresh all-time high above 13,000 usd a tonne in London on reports Indonesian authorities have shut down most of PT Koba Tin's operations.
The shut-down temporarily sidelines about 17,000 tonnes of tin production, equivalent to about 5 pct of world output.
At 2.45 pm, LME tin for 3 month delivery was up at 13,100 usd a tonne against 12,700 usd at the close yesterday. Earlier, the metal hit 13,200 usd – its highest ever level.
"We think prices could climb even higher if the Indonesian situation continues to drag on as it is," said Man Financial analyst Ed Meir.
He added it is also unclear whether the nationalisation of the Glencore's 12,000 tonne-a-year Vinto smelter will result in lower Bolivian tin production.
Copper was also higher as traders overlooked yet another increase in copper stocks to focus on more supportive data out from China.
Data out earlier showed Chinese imports of refined copper and copper alloy rose to 147,650 tonnes in January – a 70 pct increase over year-earlier levels.
On Monday, data showed Chinese imports of unwrought copper and semi-finished copper products rose 44 pct in January over December.
"We see the 5,950-6,000 usd area as providing some resistance, and the market will need to do some work around these levels before pushing higher," said Meir.
The LME said in a daily report earlier copper stocks held in its warehouses rose by 450 tonnes to total 215,350 tonnes. LME copper stocks have more than doubled since the start of last year.
LME copper was up at 5,900 usd a tonne against 5,725 usd a tonne at the close yesterday.
Aluminium was up, still underpinned by worries over the general strike in Guinea, which has disrupted bauxite exports.
Bauxite is a raw material used in the production of alumina, the raw material used to make aluminium.
Over 100 people have been killed in the west African country since January, when protest erupted against the rule of President Lansana Conte.
LME aluminium was up at 2,840 usd a tonne against 2,828 usd at the close yesterday.
Nickel was up after surging 4.4 pct yesterday after an unusually large amount of cancelled warrants removed nearly half the available metal on the LME.
Cancelled warrants represent stocks booked and due for delivery.
"We are looking for another close (above) 37,000 usd a tonne today to confirm another leg higher, and hit a new record in the process," said Meir.
LME nickel was up at 38,750 usd a tonne against 37,500 at the close yesterday.
Although overall LME stocks levels have risen recently and are now nearing 4,000 tonnes, they remain at critically low levels overall.
In addition, the large number of cancelled warrants means the amount of actual nickel available to the market is equivalent to less than a day's worth of global consumption.
LME lead up was at 1,728 usd a tonne against 1,695 usd at the close yesterday, while zinc was up at 3,420 usd a tonne against 3.310 usd. |
