Indonesian Tin Exports Ban Extended Until 2012
25 Indonesian tin producers have extended the ban on tin exports until year-end.
25 Indonesian tin producers have extended the ban on tin exports until year-end.
As the old adage goes, “The only cure for high prices, is high prices.” The fundamentals of the tin market are showing this statement to be true. The high price in April prompted a sell-off of stocks in China. Now that the price is depressed Indonesia has ban exports hoping for a higher price.
Reuters Africa reports that copper hit a new low as tin and nickel went untraded today.
The tin market in 2010 was characterized by climbing prices and a supply deficit. Expectations that this year would be a repeat are being washed away as both prices and demand have slipped.
Business Times reports that the tin price on the Kuala Lumpur Tin Market soared to another all-time high today, rising sharply by US$500 to settle at US$32,200 per tonne, as supply fears continued to pressure the price.
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.
Reuters.com reports that the SGX is considering expanding into new metals futures contracts.
Itri.com reports that Chinese tin imports are falling
Mineweb.com reports that rains are subsiding in Indonesia, and tin production is expected to resume.
Bloomberg.com reports that the price of tin rose on speculations of a shortfall of supply
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