Shanghai tin edged lower on Friday but it was heading for its best week on record, while prices in London were on course to post its best weekly gain in years, as major tin producers sought to cut output.
Some of the world’s top refined tin producers said they would cut production this year following a recent slump in prices for the metal.
In total, producers including the world’s top two – China’s Yunnan Tin and Indonesia’s PT Timah – plan to reduce production by around 30,000 tonnes this year, meaning around 8% of estimated supply this year could come out of the market.
The most traded tin contract on the Shanghai Futures Exchange (ShFE) was rising 9.7% so far this week, on track for its highest weekly gain on record, despite easing 0.1% by 0231 GMT.
Benchmark tin on the London Metal Exchange (LME) dipped 0.5% to $17,370 a tonne, but still rising 6.2% so far this week, on course for its best week since March 2016.
FUNDAMENTALS
* COPPER: London copper was rising 2.7% so far this week, its best since March, while Shanghai copper rose as progress after China and the United States agreed to hold high level trade talks, reviving hopes for an end to a prolonged dispute.
* PRICES: ShFE copper rose 1.2%, aluminium advanced 0.3% while nickel dropped 2.3%. LME copper eased 0.3%, aluminium dipped 0.2%, zinc dropped 1% while nickel rose 0.2%.
* NICKEL: “Indonesia government announced that miners can seek new export quotas, which will be valid until the end of the year. This is likely to result in a surge in exports of nickel ore ahead of the planned ban on 1 January 2020,” said ANZ.
* INDONESIA: Indonesia on Thursday released a decree allowing new exports quotas to be issued but only for validation until the end of this year.
* NICKEL MINER: Poseidon Nickel Ltd, buoyed by a recent surge in nickel prices, said on Friday it would restart operations at its Black Swan project in Western Australia.
