6 more Tin a year earlier at the same time

Tin is a flamboyant year end. Yesterday, on the London Metal Exchange (LME), three months of his contract is negotiated, at the meeting, at a maximum price of $ 11.525 per tonne, setting a new record for seventeen years.

The trigger for this new wave of purchases was the announcement by the Indonesian authorities of their commitment to contain the refined metal exports. The proposed measure has its source in the illegal export of Indonesian Tin who, according to the Government in Jakarta, would have brought a serious breach to the quality of the product of the extrême-oriental archipelago.

According to the official projects, only foundry with permits issued by the State services will be able to export refined Tin. The metal sold internationally should display a degree of 99.85 purity. Jakarta expects to launch its own Tin market to increase the value added of domestic producers.

The Indonesian Executive had already been talking about him in the thorny dossier of illegal Tin by closing, current October 20 lack the necessary permissions foundries. The specialized Office CRU found that as a result of this decision the overall supply of refined Tin has been reduced by about 7,000 tonnes.

For the London Independent Institute, this non-ferrous market should finish the year on a shortfall of 3,000 tonnes. Opinion shared by specialists in Société Générale. In 2005, supply exceeded demand for 26,000 tonnes. The failure of metal should intensify in 2007. In Standard Bank economists continue to predict a surplus of 8,000 tonnes in 2006, anticipate it to 5,000 tons (10,000 tonnes for Société Générale).

Appearance of a deficit

"With the Indonesian authorities, who appear to be seriously tightening the rules of the refining of the Tin industry, we have choice to reduce our production forecasts", justify. Proposed far 399.000 tonnes in 2007, the anticipation of the global flow of refined product is now reduced by the British Bank to Volksbank tonnes.

The rise of China does not appear to be able to prevent the emergence of a global deficit. Yet, the former empire of the Middle produced, in November, 30.6 more Tin a year earlier at the same time.

On the first eleven months of 2006, its offer jumped 24 on an annual basis, to 129.515 tonnes. However, point out the experts in GFMS, "much of this additional production will remain in China in view of the robust domestic demand."

77 since the beginning of 2006

This context contributed Wednesday to make a few rare operators active on the London place take very seriously the package of measures being finalized. The price of Tin was able to go to the onslaught of the strong resistance of the $ 11.250 per tonne.

The last flight allowed the non-ferrous "minor", because the Treaty less of its complex, further increase the gain of 77 that he has recorded since the beginning of the year. Gain which is in no way hampered by the level of official stocks of the London Metal Exchange. The latter recently fell below the 13,000 tonnes after a strong rebound towards the 14,000 tonnes initiated late November. They were around the 17,000 tonnes in early 2006.