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.
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.
Holes and test pits are finally completed on the edge of Dartmoor by Wolf Minerals, Australian-based mining company. The plan was also acknowledged by Devon County Council and English Heritage. James Paxman, from the Dartmoor Preservation Association, said, “We’ve met a number of times with the mineral company and we’re convinced these are good intentions [...]
Tin mining is to make a triumphant return to Cornwall as part of a landmark scheme which will create 1,000 new jobs and see vast swathes of land turned over to housing and employment. Western United Mines has sealed a deal that will bring mining operations back to life.
Lots of positive sentiment in the air. Rio Tinto, the world's second-largest miner, said it saw signs of recovery in China and it expected aluminum AL-FT prices to rise in the second half of 2009. Indonesia's tin consortium, Bangka Belitung Timah Sejahtera too expects a 20-30 per cent increase in its monthly production of 2,000 tonnes during the Muslim fasting season which starts on Saturday.
For decades the tin market has moved from one crisis to another, and the current world recession is now raising new challenges for all stakeholders in the industry. In the short-term the market is again oversupplied, but in a few years the situation could change dramatically. Though global demand for tin has fallen rapidly to an estimated 350,000 tonnes in 2008, the 15 tin companies listed on the ASX are doing extremely well. Check out an overview.
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.
It couldn't have come at a better time. Sentiment on the LME metals complex is still trapped between the conflicting signals coming from East and West, resulting in choppy, consolidatory price action. However, downside momentum has stalled across the board with predators now looking for "relative value" plays.
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.
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