Tin and nickel have been in a battle for the highest priced non-precious metals traded on the LME. Currently the price of tin on the LME is $23,450 per tonne, while nickel is priced at $21,645 per tonne. Comparing the supply and demand fundamentals of the two markets is essential.
Platts reported tin's recent fundamentals point to higher prices soon, as China wraps up a recent phase of tin destocking.
Reuters UK reports tin is expected to return to the record high it hit in April later this year as demand in China rises.
The Financial Post reports that base metals, like tin, fell across the board as demand from China slowed.
IBTimes reports that Chinese government may not tighten monetary policy as the economy slows affecting base metal prices.
Bloomberg reports tin recyclers in China have cut production as the government toughened environmental checks and imposed power restrictions.
Reuters reports that base metals fell today after data showed China's manufacturing had slowed.
Supply of tin for 2011 may have a 15,000 tonne deficit, driving prices higher still. China recently capped production of tin and other base metals; and Indonesia, the largest exporter of tin, has capped production at 100,000 tonnes and cracked down on illegal mining.
Reduced tin production from Indonesia has had a big effect on prices for the base metal. Fearing that the high prices will encourage a wave of new production, Indonesia has stated that it will limit production to 100,000 tonnes, which could cause a larger supply deficit in 2011, boosting prices even higher.
Cadbury has abandoned its tin cans for cardboard boxes, in an attempt to go green this Christmas. Could this prove to be the death knell for the tin industry?
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