So which companies have tin??
Nickel Advances to a Record After Inventories Slump (Correct)
By Brett Foley
(Corrects to show inventories fell in the second paragraph.)
Feb. 20 (Bloomberg) -- Nickel rose to a record in London on speculation that supply may lag behind demand after stockpiles fell for the first day in 10. Tin gained to a 17-year high and lead traded at its highest ever for a second day.
London Metal Exchange-monitored nickel inventories fell 36 metric tons to 4,398 tons, the LME said in a daily report. Stockpiles have dropped 34 percent this year and are equal to less than one day of global consumption. Demand for the metal is surging among stainless-steel makers.
Stockpiles are ``critically low,'' said Robin Bhar, a London-based metals analyst with UBS AG, which is a member of the LME. ``This volatile market is not for the faint-hearted.''
Nickel for delivery in three months on the LME advanced $1,050, or 2.7 percent, to $39,850 a metric ton. Earlier, the metal rose to $39,999 a ton, beating the previous record of $39,501 recorded on Feb. 15.
Prices have jumped more than sixfold in the past five years as supply failed to keep up with demand from China, the world's largest producer of stainless steel. China's stainless-steel production soared 68 percent in 2006, Xinhua News Agency reported on Feb. 14.
Tin rose $295, or 2.2 percent, to $13,495 a ton. The metal earlier rose to $13,500, the highest since at least 1989. Supplies will fall short of demand by about 30,000 tons in 2007 because of reduced output in Indonesia, according to a report published yesterday by U.K. consulting companies ITRI Ltd. and CRU.
Indonesian Crackdown
The Indonesian government plans to tighten export regulations and crack down on illegal mining. PT Koba Tin, the country's second-largest producer, halted shipments last week after three directors were held by police investigating illegal ore purchases.
Tin miners have until Feb. 22 to register for the right to export the metal from Indonesia, the world's second-largest producer after China.
``The concern is that there is still uncertainty as to how long supply will be disrupted,'' said Roy Carson, a London-based trader at Triland Metals Ltd., one of 11 companies dealing on the LME's floor.
Lead advanced to a record for a second straight session as production disruptions continued at Xstrata Plc U.K. refinery at Northfleet. Xstrata maintained ``force majeure'' at the facility after ore supplies from Australia were delayed following a cyclone last month. Force majeure is a legal clause that allows a company to default on a sales contract due to circumstances beyond its control.
Lead gained $50, or 2.8 percent, to $1,830 a ton. Earlier, prices rose to $1,845 a ton, beating yesterday's high of $1,817.50.
Copper dropped $85, or 1.5 percent, to $5,720 a ton on speculation that global mine output will exceed demand for the metal used in pipes and wires. Global mine supply will increase 6 percent, or 900,000 tons, in both 2007 and 2008 as new mines and expansion projects deliver more ore, analysts at Sanford C. Bernstein Ltd. said in a report on Feb. 15.
Also on the LME, aluminum fell $38 to $2,742 and zinc declined $67 to $3,325.
To contact the reporter on this story: Brett Foley in London at bfoley8@bloomberg.net .
Last Updated: February 20, 2007 16:32 EST
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