One investor seems to be buying up most of the tin traded on the LME. Sparking unease among traders, several questions are doing the rounds - are the prices being pushed up artificially? Why the big position? Who benefits?
Commodities like tin, rubber and steel could be heading for a short-term rally in the near future bolstered by active buying interest from institutional and fund managers on most major world commodities, dealers said. Manufacturers worldwide were seen building up inventories to take advantage of the current weak US dollar, traders said. The weak greenback makes commodities attractive as a hedge against inflation.
Wednesday, October 14, 2009