Tin price hike on tight supply from Indonesia
The current tight supply of tin particularly from Indonesia, following the country's new trading rule which halts export of tin ingots, prompted the Kuala Lumpur Tin Market (KLTM) to close
US$300 higher at US$23,200 a tonne today, a dealer said.
The dealer said new Indonesian regulations requires the ingot be traded on a local exchange before shipping, part of a broad range of reforms in commodities ranging from palm oil to minerals.
"Indonesia is one of the world's largest supplier of tin and the cutback in shipment has affected trading of the metal. For the time being, they are likely to stop shipments temporarily," he told Bernama.
Meanwhile, the tin price on the London Metal Exchange (LME) was up US$50 at US$23,000 a tonne, weighed by inconsistencies of other metal prices.
At the opening bell, bids outpaced offers by 55 tonnes to 16 tonnes.
The day's turnover decreased to 25 tonnes, from 35 tonnes yesterday, with buying interest noted from Japanese, European and local traders.
The premium between the KLTM and the LME widened to US$590 a tonne from Wednesday's US$340 a tonne.-- Bernama