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.
The Financial Post.com reports that because of China’s growing appetite for consumption of various commodities, including tin, there is danger of prices moving beyond what China can afford
Unlike most of the other base metals, there is no growing tin surplus. Inventories held at the London Metal Exchange now sit at 8,820 tonnes, against a 52-week high of 11,430 tonnes. The potential is that a rebound in Chinese demand, coupled with the closing of mines in Indonesia, could trigger supply shortages.
Monday, September 19, 2011