Tin buyers to take cautious stance

 

The Kuala Lumpur Tin Market (KLTM) is expected to continue its bearish sentiment next week as the underlying fundamentals remain weak.

Dealers said in the absence of fresh, market moving factors, the metal is expected to hover around the US$14,890 per tonne level throughout the week.

Against this backdrop, buyers are expected to take on a cautious stance while sellers would abstain from making large offers, in anticipation of higher prices.

European, Japanese and local buyers are expected to dominate trade, which may also see a technical correction as the metal price has risen too fast.

For the week-just-ended, the KLTM traded mixed but closed easier moving in tandem with the bearish trend on the London Metal Exchange (LME).

European, Japanese and local buyers dominated the market while sellers abstained due to the short supply.

The metal price ended the week US$40 lower at US$14,890 per tonne but it was still at a premium of US$175 per tonne when compared to the price on the LME.

Weekly turnover declined to 269 tonnes against the 402 tonnes registered last week.-- Bernama