Despite being perceived as a sunset industry for the past 10 years, the local tin industry is still surviving mainly due to increased solder demand from the electrical and electronic industries.
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Novosibirsk Integrated Tin Works, Russia’s sole producer of the metal, declared that first quarter sales volumes dipped by 72 percent from the year-earlier period as demand slumped.
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Despite being perceived as a sunset industry for the past 10 years, the local kuala lumpur tin industry is still surviving mainly due to increased solder demand from the electrical and electronic industries.
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Tin prices gained a whopping 18 per cent on the LME in the month of April, despite a huge gain in LME inventories by almost 15 per cent. Global production, however, is expected to fall 6.5 per cent by 21,000 tonnes, to 304,500 tonnes in 2009. According to the International Tin Research Institute demand for tin is expected to fall by 10.5 per cent in 2009 amid the global economic crisis. Hence, the market could be in surplus by 5,000 to 10,000 tonnes in 2009.
The Kuala Lumpur Tin Market has closed at near six-month high yesterday, buoyed by strong demand from European purchasers and sharp gains on the London Metal Exchange overnight.
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As per reports given by Energy Ministry, Indonesia’s tin output may not touch 90,000 tonnes this year amid slowing global demand.
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Tin was at $10,460 from $10,475 a tonne on LME. The deepening recession has slashed the demand for the metal.
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As per Resource Capital Research, the current tin market is lacking any strong fundamental impetus; at the moment, a bleak macro-economy and its implications for weak demand dominate.
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Even as stockpiling in China is set to raise the bar for the price of tin, miners in Peru may go on strike on March 15, which could bring on some pressure. Queensland Small Miners too have blamed the government for not adequately supporting small miners.
The Kuala Lumpur Tin Market (KLTM) are likely be higher next week due to strong demand from overseas buyers, dealers said.
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Friday, June 5, 2009