Tin Shipment Lifted by Lower Price in Osaka

Tin ingot shipment is increasing around Osaka when the ingot price at London Metal Exchange plunged by 19% to US$ 26,700 per tonne at settlement on Tuesday from the record of more than US$ 33,000 in mid-April. The market price in Japan also decreased by up to 600 yen to the lowest price in 4 months from recent peak of around 3,000 yen per kilogram.

Major dealer source sees LME tin price significantly decreased after speculation buying lifted the price to overvalued level. The buyers reduced tin purchase after the price increased in January. The dealers missed the timing to replenish the low level stock when the price continued increasing under demand uncertainty after the major earthquake. The dealers and buyers would increase the purchase.

Tin ingot supply is also increasing after the end of rain season in the largest export country of Indonesia. Chinese smelters also eye export for Japan.