(MORE TO FOLLOW) Dow Jones Newswires
April 17, 2007 09:12 ET (13:12 GMT)
LONDON (Dow Jones)--London Metal Exchange three-month tin jumped to a
fresh record high of $14,700 a metric ton on consumer and fund buying
amid thin market conditions, according to market participants Tuesday.
"Liquidity is very thin so it's easy for prices to jump around," said a
London-based broker. Small amounts of consumer buying as well as
spillover fund buying across the LME base metals complex have helped
lift tin prices, the broker added.
LME tin prices have climbed roughly 12% since hitting a low of $13,100
on March 29, and have climbed roughly 28% from the start of 2007. At
roughly the same time, LME tin inventories are down 10% since the start
of April and down 32% since the start of 2007.
(MORE TO FOLLOW) Dow Jones Newswires
April 17, 2007 09:16 ET (13:16 GMT)
Tin prices look steady on the charts and $15,000 is the next upside
target, said Edward Meir of Man Financial in New York, who adds that
$14,000/ton is good support for the metal.
Ongoing supply concerns in Indonesia continue to underpin prices and
conflicting reports out of the region add to market uncertainty and
volatile, higher prices.
The Southeast Asian country produces roughly 120,000 tons of tin each
year, around one third of global supply.
Last October, Indonesia closed dozens of small-scale smelters that
together produced about half the country's annual tin output on
allegations they were purchasing tin ore illegally, damaging the
environment and evading taxes.
Meanwhile, PT Yinchenindo Mining Industry, or PTYMI, said on Friday it
had been granted a tin export license by the Ministry of Trade,
according to tin industry specialist ITRI, who received the announcement
directly from the company.
However, there has been no confirmation from Indonesia's Ministry of
Trade.
The market has largely ignored the news with traders saying they want to
see evidence that substantial amounts of tin have been able to leave
Indonesia.
State-controlled PT Timah Tbk. was granted an export license in late
February.
(MORE TO FOLLOW) Dow Jones Newswires
April 17, 2007 09:31 ET (13:31 GMT)
