KUALA LUMPUR – The Kuala Lumpur Tin Market (KLTM), which hit an eight-year high of US$22,650 (RM91,582) per tonne at yesterday’s close, is likely to maintain its uptrend next week, a dealer said.
He projected local tin to trade between US$22,500 and US$24,000 per tonne in the coming week.
The dealer attributed the upward momentum to the positive sentiment among investors after the 46th US President Joe Biden’s inauguration.
On a Friday-to-Friday basis, the local tin market soared US$1,100 to close at US$22,650 per tonne – the highest since April 30, 2012 – from US$21,550 per tonne in the previous week. Meanwhile on the London Metal Exchange (LME), tin jumped US$915 to US$22,000 per tonne from US$21,085 per tonne previously.
“Biden's victory was followed by his executive orders for the Covid-19 pandemic response and it (the news) was well-received globally.
“Hence, we foresee the commodity market reacting positively. And as for the tin market, since it has already hit the US$22,000 per tonne level, it will be tough to go down,” the dealer said.
He said the local tin market is also set to take its cue from the LME’s performance.
Yesterday, the metal’s price on LME breached the US$22,000 per tonne level, marking a six-year high.
For the week just ended, the KLTM was on an uptrend, supported by demand from China, South Korea, Japan, Taiwan, European countries, Pakistan, Bangladesh and the US.
On a Friday-to-Friday basis, the local tin market soared US$1,100 to close at US$22,650 per tonne from US$21,550 per tonne in the previous week, while on the LME, it surged US$915 to US$22,000 per tonne from US$21,085 per tonne.
Turnover for this week improved to 68 tonnes versus 51 tonnes last week.
Yesterday, the price differential between the KLTM and LME was at a premium of US$550 per tonne compared to US$465 per tonne a week earlier. – Bernama, January 23, 2021
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