Traders see tin prices rising<\/p>\n
SHANGHAI (Dow Jones): Reduced tin exports from China will
\ntighten supply of the metal in Asia, possibly pushing prices
\nhigher later in the year, traders said.<\/p>\n
Tin exporters in China have exhausted their licenses to export
\nfor the year. They are hopeful the government will issue more
\nlicenses. However, unless prices improve, the authorities are
\nunlikely to do so, traders said.<\/p>\n
Many end-users in Asia have few alternative supplies in Asia
\nbecause Indonesia, the other major producer and exporter in the
\nregion also doesn't have enough material.<\/p>\n
\"I will need to buy (tin) later in the year, but with China
\nnot issuing more licenses, there are few options,\" said a Tokyo-
\nbased trader.<\/p>\n
China is the world's largest producer of tin and one of the
\nlargest exporters. It exported 53,420 metric tons of tin in the
\nyear to Aug. 31. In 1999, it exported 64,685 tons.<\/p>\n
Global tin output in 2000 is expected to be around 250,000
\nmetric tons, according to Standard Bank London's research
\ndivision.<\/p>\n
Industry participants said tin prices could spike later in the
\nyear to as high as $6,000 a metric ton, with some participants
\nexpected to buy heavily later in the fourth quarter of the year,
\nthe Tokyo-based trader said.<\/p>\n
Three-month tin price on the London Metal Exchange was trading
\nat $5,355 a metric ton at 0100 GMT Monday, sharply lower from its
\nJan. 6 peak of $6,175\/ton.<\/p>\n
Tin prices haven't been reflecting the lack of tin from China
\nbecause many regional end-users, particularly in Japan, have been
\nrunning down inventory, the Tokyo-based trader maintained.<\/p>\n
\"The exhaustion of the export licenses will certainly underpin
\nprices,\" said Robin Bhar, head of base metals research with
\nStandard Bank London in London.<\/p>\n
But Bhar cautioned that any spike may prompt Chinese
\nauthorities to issue more licenses.<\/p>\n
Indonesia's PT Timah, the world's single biggest tin producer,
\nsaid it can't meet spot demand and is referring buyers elsewhere,
\na spokesman said.<\/p>\n
PT Timah has cut its production estimates for 2000 to 35,000
\ntons, from initial estimates of 40,000 tons. As a result, it has
\npared supply agreed under long-term supply contracts to buyers by
\n5 percent across the board this year.<\/p>\n
\"We are referring them elsewhere to buy tin, mostly to China,\"
\nsaid the spokesman.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/traders-see-tin-prices-rising-1447893297",
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