By Kishori Krishnan Exclusive To Tin Investing News Share

The metals markets got a surge of heat with world leaders committing $1.1 trillion to combat global recession. Tin was up at $10,950 a tonne, its highest since March 11, from $10,450.

Traders said tin prices were up partly because of the re-emergence of a dominant position controlling more than 90 per cent of warrants on the London Metal Exchange stocks. The dominant holding is also why the premium for cash material over the three-month contract has jumped back above $200 a tonne from near $100 in the previous session.

“Better than expected economic data in the United States, a weaker dollar and friendly equity markets have given tail-wind to metal prices,” Commerzbank said in a note.

On the London Metal Exchange, copper for three-month delivery rose to $4170 a tonne, up $110 from the previous close. The metal used in power and construction had earlier touched a five-month peak at $4187.5 a tonne.

Steel-making ingredient nickel rose to $10,600, its highest since February 11, and closed at $10,580 a tonne from $10,100.

Lead rose to $1285 from $1220, and zinc gained to $1332 a tonne from $1312.

British Prime Minister Gordon Brown said the decisions made at the G20 summit in London meant the recession could be shortened and jobs could be saved. Also behind the copper price jump was news about U.S. February factory goods orders, which rose after falling for six months, bolstering hopes the world’s largest economy may be starting to crawl out of recession.

“Factory goods orders seem to confirm that the worst could be over – good for copper and other base metals,” said David Thurtell, analyst at Citigroup.

Gentle nudge

There’ll be no giant push, though, just a gentle nudge from the massive cash infusion. “This is not wild speculation, but a rational reaction to the Fed’s decision that will inflate the economy and weaken the dollar over the next two years or so,” says Phil Flynn, a senior vice president with Alaron Trading, a commodities trading firm.

Oil prices should hover in the $50 to $60 range through early fall, he added, about $10 higher than previously expected. But there’s little chance of what happened last year: a super spike that ratcheted up oil prices to nearly $150 a barrel. The economies of most industrialised nations will limp along through autumn at least, keeping oil consumption tepid at best. Look for crude oil prices to average about $57 a barrel this year, down from $100 a barrel throughout 2008, Flynn added.

Company News

Immtech Pharmaceuticals, Inc.(NYSE:IMM) (AMEX:IMM) announced that it has made an investment in Gold Avenue Ltd., a privately-held Hong Kong company with interests in tin production in China. Gold Avenue is invested in a joint venture to produce tin products from large tin tailing sites located in Yunnan, China. Yunnan Tin Group is a large producer of tin in the world. A subsidiary of the company is the joint venture partner in this investment.

Gold Avenue will invest initially in a loan with an annual interest rate of 22 per cent, convertible, at its option anytime in the next five years, into shares in the joint venture.

China is the world’s largest consumer and producer of tin. Tin is used in soldering electronics, in finishing steel and other metals, and in chemicals for multiple applications. The world’s supply of tin has been on the decline, while demand for tin has been growing steadily.

Eric L. Sorkin, Immtech’s chairman and chief executive officer, stated, “This investment opportunity positions us to create shareholder value by maximising the strengths of our business relationships and our understanding of product development and distribution in China. Established price inelasticity makes tin production an attractive opportunity.”

Australian miner Metals X Ltd (ASX: MLX) which had suspended operations at its Renison tin mine and concentrator in Australia after a train derailment damaged infrastructure, has reopened the mine. There were no injuries as a result of the accident.

The Renison project produced about 1,400 tonnes of tin metal in concentrates for the March quarter, Metals X said. Earlier, the company had reached an agreement to sell its wholly owned subsidiary, Bluestone Nominees Pty Ltd, the owner of its Collingwood tin project to Icon Resources Ltd.

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