Kuala Lumpur Tin Market expected to see a mild upside this week

Monday, January 17, 2011

KUALA LUMPUR: The Kuala Lumpur Tin Market (KLTM) is expected to see a mild upside bias this week, bolstered by fresh demand globally.

Dealers said the local tin is expected to trade above US$27,000 per tonne this week with active participation of overseas traders, especially from Europe.

Demand is picking up, while sellers are holding back, as they wait for prices to further increase.

“Apart from this factor, the KLTM from time to time will also look at the movement on the London Metal Exchange (LME) for direction,” the dealer added.

At the week's close, higher demand and a strong performance of the metal on the LME saw the local tin price, close as high as US$26,900 per tonne last Friday from the US$26,500 previous week.

Local, Japanese and European traders were present in the market, throughout the week.

On the LME, the tin price rose to US$26,850 per tonne last Friday as against US26,250 per tonne at the end of previous week.

Turnover for the week advanced to 255 tonnes from the 200 tonnes previous week.

The premium, based on a formula that includes freight, insurance and other financial costs, fell to US$470 per tonne last Friday compared with US$670 per tonne at the end of previous week. Bernama

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