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 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 is reported that the cost of cans could rise by between 35% and 40% in April 2009 after ArcelorMittal South Africa announced that it would increase the price of tin plate steel by almost 80% to its customers. For full story, click here
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.
Tin was at $10,001 a tonne down from earlier $10,050 a tonne, on Wednesday. Metal Prices at 1036 GMT Metal Last Change Percent Move End 2008 Ytd Percent. For full story, click here
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 tin price on the Kuala Lumpur Tin Market (KLTM) ended higher by US$150 to US$10,750 per tonne on some profit-taking. For full story, click here
Once the economy bottoms, which may happen in some countries in 2009, there is a chance demand will be a bit stronger than we’ve seen during the past few weeks and we could see prices being a bit more supported. Tin closed at $10,800 from $11,100. For full story, click here
Tin will be one of the first metals to recover once markets stabilise, says Sydney-based Resource Capital Research. For full story, click here
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.
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