SINGAPORE, Dec 1 (Reuters) - London Metal Exchange tin prices leapt 9.8 percent on Monday after news that China's Yunnan province would build a 1 million tonne stockpile of base metals, including 100,000 tonnes of tin.
LME tin jumped $1,200 to $13,500 at 0700 GNT soon after the report, but traders were sceptical of the tonnage involved, which amounts to more than a quarter of world output.
According to a government website, Yunnan will buy 150,000 tonnes of copper, 300,000 tonnes of aluminium, 150,000 tonnes of lead, 300,000 tonnes of zinc and 100,000 tonnes of tin. The reserves will be kept for one year.
Analysts estimated that at current prices, the plan could cost nearly $3 billion. (Reporting by Nick Trevethan; Editing by Clarence Fernandez)
MLX Price at posting:
9.3¢ Sentiment: Buy Disclosure: Held
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