interesting article I found on basemetals.com today pretty well sums up why TIN and inturn MLX has further upside from these levels.
Noticed it just hit 44.5c if we see some more buying this afternoon there is a real chance for a technical breakout on top of the fundamentals that are at play.
DJ BASE METALS: LME Tin Jumps On Technical Breakout Wed, Jul 18 2007, 17:25 GMT http://www.osterdowjones.com/
London Metal Exchange tin blitzed the rest of the complexWednesday as funds leaped at a technical play that market participants seedriving it higher.
LME tin jumped almost 5% Wednesday, to end just shy of $15,000/ton, short ofits $15,100/ton April high.
The metal has been traded around $14,000/ton since mid-May, traders said,which added fuel to the breakout, as buy stops were triggered at key technicallevels all the way up.
Already, analysts have warned of a "new nickel or lead" in the making, withtechnical indicators for the metal pointing as high as $16,000/ton, said UBSanalyst Robin Bhar.
Like the lead and nickel markets, the tin market is relatively small, withsupply side stresses, and dominated by one or two "very, very large funds,"analysts said.
In the coming days, LME tin is set to challenge$15,100/ton hit in April when Indonesian supply problems kicked in, market players said.
Indonesian authorities cracked down on dozens of small smelters last October,forcing them to close up shop due to environmental and tax code breaches,although some larger smelters have gradually come back on line.
Mostly due to these problems, reported tin production from January to May was down 2,900 tons on the year, the World Bureau of Metal Statistics said Wednesday.
MLX Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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