Malaysian Tin Bulletin-March'11

MALAYSIAN TIN BULLETIN
MARCH 2011
March Tin Market Review

Kuala Lumpur Tin Market (KLTM)
Tin trading on the KLTM during the month of March was generally influenced by the political uncertainties in several Middle Eastern countries, and the earthquake-tsunami stricken Japan. The KLTM opened the March trading month at US$32,305 per tonne, which was also the highest price level for the month. The tin price remained unchanged the following day and slid thereafter before recovering slightly to close the first trading week at US$31,870 per tonne. The recovery, however, did not sustain as the price slid below the US$30,000 per tonne psychological level during the second trading week due to weak buying interest. It ended that trading week at US$29,850 per tonne. During the third trading week, the tin price rose somewhat in the beginning before declining sharply to record the lowest price level for the month at US$28,600 per tonne on 17 March. According to a dealer, the downturn was due to lack of buying interest, and was in tandem with the weaker tin trading on the London Metal Exchange (LME). Thereafter, the KLTM price rebounded on technical correction to end the trading week higher. The fourth trading week saw the tin price strengthening further. According to a trader, demand was high then as buyers bought large quantities to avoid possible disruption of supply due to the political uncertainties in the Middle East and the disaster in Japan. European, Japanese and local traders dominated trading during this period. During the final trading week, the KLTM price failed to maintain its earlier upward momentum and traded range bound throughout the week to finally close the month at US$31,700 per tonne. There was lack of buying interest during this period as purchasers had already bought large quantities earlier. The metal was traded between US$28,600 and US$32,305 per tonne on the KLTM during the month. There were 23 days of trading on the KLTM in March, with the average price recorded for the month at US$30,945 per tonne. The months average daily turnover was 42 tonnes, down from 55 tonnes recorded in February. The highest daily turnover recorded in March was 77 tonnes, and the lowest was 15 tonnes.
MARCH 2011
LME and New York Market

Tin metal on the LME during the month of March was traded amid concerns over the political instability in some Arab countries, and the disaster in the earthquake-tsunami stricken Japan. Other base-metals trading on the Exchange also impacted the trading of tin on the LME during the month. Tin prices on the LME opened the months trading at US$32,350 and US$32,400 per tonne for cash and 3month tin, respectively which were also their highest price level for the month. Thereafter, prices went on a downward decline. By middle of the third trading week, they reached the months lowest price level of US$28,095 and US$27,905 per tonne for cash and 3month tin, respectively, much below the US$30,000 per tonne psychological level. Tin prices rebounded thereafter and strengthened towards end of the trading month with some technical corrections coming into play, which checked the prices somewhat from rising further. The up-trend was backed by improved demand as buyers purchased large quantities on speculation that supply of the metal would be disrupted. The LME cash tin closed the trading month at US$31,640 while the 3-month tin closed at US$31,550 per tonne. The March average LME cash and 3-month tin prices were US$30,740 and US$30,711 per tonne, respectively. Tin trading on the New York market in March followed the same trading pattern as on the LME. The average New York spot tin price for the month was US$31,432 per tonne. The highest and lowest prices recorded for the month of March were US$33,003 and US$29,388 per tonne, respectively.
MARCH 2011
News Round - Up
PT Timah Building Second Tin Chemicals Plant
PT Timah, Indonesias number one tin producer and a state-owned tin mining company, plans to build a second tin chemicals plant, which will be located in Bangka. The first phase construction of the project is expected to cost some US$11 million. However, it is not known which tin chemicals product will be produced at this new plant. Meanwhile, construction of Timahs first tin chemicals plant located in Ciligon, West Java, is currently close to completion. The plant will produce PVC stabilizers with a capacity of 10,000 tonnes annually. The first phase construction of the plant was completed in August 2010, and the entire phase is expected to be completed by this year. Timah will be exporting the stabilizers to South Korea and Japan. According to a Timah official, work on the second plant is scheduled to commence this year or latest in early 2012. He added that its capacity will be much bigger than the Ciligon's plant as the company intends to expand its downstream tin-based products manufacturing activities.
DRC to Lift Mining Ban

The Democratic Republic of Congo (DRC) will end the mining ban imposed since September 2010 on its North Kivu, South Kivu and Maniema provinces. The six month ban was imposed on these regions by the DRCs President aimed at cutting off funding to armed groups. The three provinces are rich in gold, tin and coltan, and have contributed some 85 per cent of the countrys tin production. The DRCs millitary has removed the illegal armed groups from several mining sites and the government is now working with local and international industry organisations to establish appropriate means of tracing the supply chain of its minerals. According to a local based EU-funded research group, the Pole Institute, the ban on mining has affected two million families who were dependent on mining activity. It has made them poorer. It also has reduced the regions purchasing power and consumption.
Indonesias February Tin Exports Decreased

Provisional data from Indonesias Ministry of Trade showed that the countrys refined tin exports in February declined by almost 7 per cent year-on-year to 6,181 tonnes. The decline was attributed to lower production because of bad weather conditions. But because of current high tin prices, the value of Februarys tin exports of US$171 million was a 70 per cent increase compared to the same period last year.
MARCH 2011
Indonesian Smelter to List on LME

PT Bukit Timah, one of Indonesias larger private smelters, has applied to the London Metal Exchange (LME) to list its "IMLI" brand of 99.90 per cent refined tin metal on the Exchange. The company had planned for the listing sometime in 2009, but was only able to concretise it during the second half of 2010 when its interest was officially communicated to the Exchange. Presently, PT Timah and PT Koba Tin are the only Indonesian tin producers having their brands registered with the LME. PT Bukit Timah currently produces some 600 to 800 tonnes of refined tin per month. It has a production capacity of some 1,500 tonnes per month. The company is part of the Indoprima group, which also owns PT Indra Eramulti Logam Industri (IMLI), a lead producer.
China's January and February Tin Output Rose

Latest data from the China Nonferrous Metals Industry Association shows that the countrys refined tin production increased by 19 per cent year-on-year to 23,995 tonnes during the first two months of 2011. The recent high tin prices was behind this production increase and also sales. However, the ITRI feels that this production figure was inflated since some companies tended to report their sales volume rather than actual production. Some smelters normally run down their inventories to bare minimum levels during this period, and such destocking may have been included in the production figure. A major contributor of the increase came from the Yunnan province. Its refined tin production during the January to February period rose by 31 per cent yearon-year to 14,102 tonnes, even though the provinces mine output rose by only 8 per cent to 4,741 tonnes. Chinas tin-in-concentrate production as a whole for the same period rose by 13 per cent to 12,408 tonnes. However, a considerable amount of output from small mines has never been included in the countrys official production data. (Source: Tin in the News, ITRI Ltd. UK)
MARCH 2011
Tin Statistics
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MALAYSIAN TIN BULLETIN

March Tin Market Review