Tin has hit its highest price in six months as reports of smelter shutdowns in China, the world's largest tin producer, raises worries supply will tighten further.
Media reports in China said smelters in the country's largest tin-producing province had been shut down on environmental concerns. China has been ramping up its war on pollution and industrial over-capacity this year.
"Given that the tin market was probably running short anyway this is the sort of information that would force shorts to cover and give a lift to prices," said Societe Generale analyst Robin Bhar.
"We might see the price dip back (down) again once it's realised that this (closure) is temporary, but like most things out of China, who knows?"
* TIN: London Metal Exchange tin struck its highest since January at $US20,785 a tonne and ended up 1.6 per cent at $US20,655.
* INVENTORIES: Latest LME data showed tin stocks at 2,095 tonnes, up 28 per cent since early July but still near their lowest levels since 1989. The data also showed cancelled warrants or material set to leave warehouses accounted for 35.8 per cent of total stocks.
* TECHNICALS: Cash tin was trading at a premium of $US175 versus the three month price , indicating tight nearby supply.
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