Record tin prices spur on other base metalsBy Chris Flood
Published: April 17 2007 11:14 | Last updated: April 17 2007 19:57
Tin prices hit a record on Tuesday while copper surged through the $8,000 a
tonne level for the first time in eight months, encouraging a strong
performance by other base metals.
Tin rose 2.6 per cent to $14,900 a tonne after hitting a record $15,000 in the
session, amid continuing concern about supplies from Indonesia. Last year, the
government in Indonesia shut down a large number of independent smelters
operating on the tin-producing island of Bangka and it has approved only two
export permits since then.
Copper raced 4.5 per cent higher to $8,080 a tonne amid concern that output
could be disrupted at the giant Grasberg mine in Indonesia, which is operated
by Freeport McMoran. Disgruntled workers were planning to hold a protest rally
on Wednesday, demanding fairer career opportunities and better pensions.
Grasberg is estimated to contain the worlds third largest copper reserves and
huge gold reserves and is expected to produce 499,000 tonnes of copper this
year.
Nickel jumped 4.5 per cent to $48,300 a tonne as support for sentiment
continued to come from low inventory levels with just 2,658 tonnes available to
the market, less than one-day of global consumption.
Aluminium rose 2.5 per cent to $2,892.5 a tonne while zinc leapt 5.9 per cent
higher to $3,707.5 a tonne, helped by a fall of 950 tonnes in London Metal
Exchange stocks.
Oil prices were volatile on Tuesday after news of a leak in a Canadian pipeline
that supplies the US. The leak, on Sunday night, disrupted supplies to the US
mid-West. The pipeline has a capacity of 450,000 barrels a day and is operated
by Enbridge, a Canadian company. It declined to say how long disruption would
last but said the pipeline was still pumping oil from terminals south of the
leak.
Nymex May West Texas Intermediate added 41 cents at $64.02 a barrel but futures
prices from June onwards moved lower.
Nymex June WTI traded 33 cents lower at $65.34 a barrel, which suggests traders
do not expect supply disruption to last long.
ICE June Brent fell 47 cents to $67.78 a barrel after reports on Monday that
Royal Dutch Shell would resume production by the end of the month at its
380,000b/d Forcados oilfield in Nigeria, which has been closed since February
2006.
Militants in the Niger Delta have disrupted oil production in Nigeria, the
worlds eighth largest exporter.
Violence erupted again at the weekend during state elections in the run-up to
the presidential vote on April 21 amid allegations of voting rigging.
Gold edged 0.3 per cent lower to $688.50 a troy ounce. Platinum fell 0.6 per
cent to $1,264 a troy ounce.
Copyright The Financial Times Limited 2007
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