1 MALAYSIAN TIN BULLETIN MALAYSIAN TIN BULLETIN MARCH 2011 MARCH 2011 Tin trading on the KLTM during the month of March was generally influenced by the political uncertainties in several Middle Eastern countries, and the earth- quake-tsunami stricken Japan. The KLTM opened the March trading month at US$32,305 per tonne, which was also the highest price level for the month. The tin price remained unchanged the following day and slid thereafter before recovering slightly to close the first trading week at US$31,870 pertonne. The recovery, however, did not sustain as the price slid below the US$30,000 per tonne psychological level during the second trading week due to weak buying interest. It ended that trading week at US$29,850 pertonne. During the third trading week, the tin price rose some- what in the beginning before declining sharply to re- cord the lowest price level for the month at US$28,600 per tonne on 17 March. According to a dealer, the downturn was due to lack of buying interest, and was in tandem with the weaker tin trading on the London Metal Exchange (LME). Thereafter, the KLTM price rebounded on technical correction to end the trading week higher. The fourth trading week saw the tin price strengthening further. According to a trader, demand was high then as buyers bought large quantities to avoid possible disruption of supply due to the political uncertainties in the Middle East and the disaster in Japan. European, Japanese and local traders dominated trading during this period. During the final trading week, the KLTM price failed to maintain its earlier upward momentum and traded range bound throughout the week to finally close the month at US$31,700 per tonne. There was lack of buy- ing interest during this period as purchasers had al- ready bought large quantities earlier. The metal was traded between US$28,600 and US$32,305 per tonne on the KLTM during the month. There were 23 days of trading on the KLTM in March, with the average price recorded for the month at US$30,945 per tonne. The month’s average daily turn- over was 42 tonnes, down from 55 tonnes recorded in February. The highest daily turnover recorded in March was 77 tonnes, and the lowest was 15 tonnes. March Tin Market Review March Tin Market Review Kuala Lumpur Tin Market (KLTM)
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Tin trading on the KLTM during the month of Marchwas generally influenced by the political uncertaintiesin several Middle Eastern countries, and the earth-quake-tsunami stricken Japan.
The KLTM opened the March trading month atUS$32,305 per tonne, which was also the highest pricelevel for the month. The tin price remained unchangedthe following day and slid thereafter before recoveringslightly to close the first trading week at US$31,870 per tonne.
The recovery, however, did not sustain as the price slidbelow the US$30,000 per tonne psychological levelduring the second trading week due to weak buyinginterest. It ended that trading week at US$29,850 per tonne.
During the third trading week, the tin price rose some-what in the beginning before declining sharply to re-cord the lowest price level for the month at US$28,600per tonne on 17 March. According to a dealer, thedownturn was due to lack of buying interest, and wasin tandem with the weaker tin trading on the LondonMetal Exchange (LME). Thereafter, the KLTM pricerebounded on technical correction to end the tradingweek higher.
The fourth trading week saw the tin price strengtheningfurther. According to a trader, demand was high thenas buyers bought large quantities to avoid possibledisruption of supply due to the political uncertainties inthe Middle East and the disaster in Japan. European,Japanese and local traders dominated trading duringthis period.
During the final trading week, the KLTM price failed tomaintain its earlier upward momentum and tradedrange bound throughout the week to finally close themonth at US$31,700 per tonne. There was lack of buy-ing interest during this period as purchasers had al-ready bought large quantities earlier.
The metal was traded between US$28,600 andUS$32,305 per tonne on the KLTM during the month.There were 23 days of trading on the KLTM in March,with the average price recorded for the month at
US$30,945 per tonne. The month’s average daily turn-over was 42 tonnes, down from 55 tonnes recorded in
February. The highest daily turnover recorded in Marchwas 77 tonnes, and the lowest was 15 tonnes.
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month tin, respectively which were also their highestprice level for the month. Thereafter, prices went on a
downward decline. By middle of the third trading week,they reached the month’s lowest price level of US$28,095 and US$27,905 per tonne for cash and 3-month tin, respectively, much below the US$30,000per tonne psychological level.
Tin prices rebounded thereafter and strengthened to-wards end of the trading month with some technicalcorrections coming into play, which checked the pricessomewhat from rising further. The up-trend wasbacked by improved demand as buyers purchasedlarge quantities on speculation that supply of the metalwould be disrupted. The LME cash tin closed the trad-
ing month at US$31,640 while the 3-month tinclosed at US$31,550 per tonne.
The March average LME cash and 3-month tin priceswere US$30,740 and US$30,711 per tonne, respec-tively.
Tin trading on the New York market in March followedthe same trading pattern as on the LME. The averageNew York spot tin price for the month was US$31,432per tonne. The highest and lowest prices recorded for the month of March were US$33,003 and US$29,388per tonne, respectively.
LME and New York Market
Tin metal on the LME during the month of March wastraded amid concerns over the political instability in
some Arab countries, and the disaster in the earth-quake-tsunami stricken Japan. Other base-metals trad-ing on the Exchange also impacted the trading of tin onthe LME during the month.
Tin prices on the LME opened the month’s trading atUS$32,350 and US$32,400 per tonne for cash and 3-
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News RoundNews Round--UpUp
PT Timah, Indonesia’s number one tin producer and astate-owned tin mining company, plans to build a sec-ond tin chemicals plant, which will be located inBangka. The first phase construction of the project isexpected to cost some US$11 million. However, it isnot known which tin chemicals product will be pro-duced at this new plant.
Meanwhile, construction of Timah’s first tin chemicalsplant located in Ciligon, West Java, is currently close tocompletion. The plant will produce PVC stabilizers witha capacity of 10,000 tonnes annually. The first phaseconstruction of the plant was completed in August2010, and the entire phase is expected to be com-pleted by this year. Timah will be exporting the stabiliz-ers to South Korea and Japan.
The Democratic Republic of Congo (DRC) will end themining ban imposed since September 2010 on its
North Kivu, South Kivu and Maniema provinces. Thesix month ban was imposed on these regions by theDRC’s President aimed at cutting off funding to armedgroups. The three provinces are rich in gold, tin andcoltan, and have contributed some 85 per cent of thecountry’s tin production.
The DRC’s millitary has removed the illegal armedgroups from several mining sites and the governmentis now working with local and international industry or-ganisations to establish appropriate means of tracingthe supply chain of its minerals.
Provisional data from Indonesia’s Ministry of Tradeshowed that the country’s refined tin exports in Febru-ary declined by almost 7 per cent year-on-year to6,181 tonnes. The decline was attributed to lower pro-duction because of bad weather conditions. But be-cause of current high tin prices, the value of February’s
According to a Timah official, work on the second plantis scheduled to commence this year or latest in early2012. He added that its capacity will be much bigger than the Ciligon's plant as the company intends to ex-pand its downstream tin-based products manufacturingactivities.
According to a local based EU-funded research group,
the Pole Institute, the ban on mining has affected twomillion families who were dependent on mining activity.It has made them poorer. It also has reduced the re-gion’s purchasing power and consumption.
tin exports of US$171 million was a 70 per cent in-crease compared to the same period last year.
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PT Bukit Timah, one of Indonesia’s larger privatesmelters, has applied to the London Metal Exchange(LME) to list its "IMLI" brand of 99.90 per cent refinedtin metal on the Exchange. The company had plannedfor the listing sometime in 2009, but was only able toconcretise it during the second half of 2010 when itsinterest was officially communicated to the Exchange.Presently, PT Timah and PT Koba Tin are the only In-donesian tin producers having their brands registeredwith the LME.PT Bukit Timah currently produces some 600 to 800tonnes of refined tin per month. It has a productioncapacity of some 1,500 tonnes per month. The com-
Latest data from the China Nonferrous Metals IndustryAssociation shows that the country’s refined tin produc-tion increased by 19 per cent year-on-year to 23,995tonnes during the first two months of 2011. The recenthigh tin prices was behind this production increase andalso sales. However, the ITRI feels that this productionfigure was inflated since some companies tended toreport their sales volume rather than actual production.Some smelters normally run down their inventories to
bare minimum levels during this period, and such de-stocking may have been included in the productionfigure.A major contributor of the increase came from the Yun-nan province. Its refined tin production during theJanuary to February period rose by 31 per cent year-on-year to 14,102 tonnes, even though the province’smine output rose by only 8 per cent to 4,741 tonnes.
Indonesian Smelter to List on LME
pany is part of the Indoprima group, which also ownsPT Indra Eramulti Logam Industri (IMLI), a lead pro-ducer.
China's January and February Tin Output Rose
China’s tin-in-concentrate production as a whole for thesame period rose by 13 per cent to 12,408 tonnes.However, a considerable amount of output from smallmines has never been included in the country’s officialproduction data.
