Monday January 21, 2013
KUALA LUMPUR: The tin price on the Kuala Lumpur Tin Market (KLTM) is expected to stage a better performance this week on improved demand for the metal, a dealer said.
The dealer said the metal price is likely to trade at the US$25,200 per tonne level with the daily movement on the London Metal Exchange (LME) also having some influence on the local market's performance.
During the week just-ended, the KLTM price was US$500 higher at US$25,150 per tonne compared to the US$24,650 per tonne registered the previous Friday with the participation of European, Japanese and local buyers.
The price of the metal was on an uptrend on most days amid the volatility recorded on the LME.
Weekly turnover slipped to 203 lots, compare to previous week's 230 lots, with Japanese, European and local buyers dominating the market.
The price differential between the KLTM and the LME narrowed to a premium of US$580 per tonne from the US$430 per tonne previous Friday. Bernama
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source: Bloomberg 19/01/13
Tin may rally about 12 percent this quarter to $27,300 a metric ton, the highest price since August 2011, according to technical analysis from Trading Central SA.
The target represents on Fibonacci charts the 61.8 percent retracement of the decline from the April 2011 high to the July 2012 low, said Jeffrey Zhang, Hong Kong-based head of Asian research. In the short term, tin will probably advance to between $24,930 and $26,000 in one or two weeks, Zhang said.
“The price has already broken above a long-term declining trend line in place since April 2011 and currently remains on the upside within its bullish channel,” Zhang wrote in an e- mail. “The 20-day moving average plays well as a support role, and should continue to push the price higher.”
Tin for delivery in three months jumped as much as 4.7 percent to $24,510 a ton on the London Metal Exchange yesterday, the highest level since February. It gained 22 percent last year, the best performing main industrial metal on the LME. The price fell 0.2 percent to $24,400 by 3:07 p.m. Singapore time today, with the 20-day moving average at $23,086.
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