Tin prices set to stay firm next week

The Kuala Lumpur Tin Market (KLTM) is expected to stay firm next week, coupled with strong fundamentals and global supply shortage, dealers.

Stockpiles have been relatively low and prices are expected to increase in tandem with demand, they said.

"Production at several Indonesian mines had been hit by rough weather conditions, causing a decrease in supply," said one of the dealers.

Indonesia is the world's second largest producer of tin, with the metal mainly used in electrical soldering.

The dealer said that worsening the situation, mining activities in China had been disrupted by power shortage.

With an expected tight supply, he indicated that the tin price might go up to US$27,500 a tonne next week with the increase in consumption globally.

On a Friday-to-Friday basis, the KLTM price rose US$1,400 to US$25,700 per tonne while on the influential London Metal Exchange (LME), it climbed US$1,350 to US$25,600 per tonne.

The KLTM weekly turnover dropped to 216 tonnes from 330 tonnes previously.

The price differential between KLTM and LME stood at a premium of US$520 per tonne, up from US$435 per tonne previously. -- Bernama. Source: Business Times