Malaysian Tin Bulletin-Februari'11

8/4/2019 Malaysian Tin Bulletin-Februari'11

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MALAYSIAN T IN BULLETINMALAYSIAN T IN BULLETIN F E B R U A R Y 2011F E B R U A R Y 2011

Tin trading on the KLTM during the month of Februarywas on an upward trend backed by supply constraintand increased demand.

The opening price for the month was US$30,050 pertonne, unchanged from Januarys closing price, whichwas also the months lowest price level. It was a shortfirst trading week as the market closed for the FederalTerritory Day on 1 February and the Chinese NewYear holidays on 3 and 4 of February 2011.

The second trading week opened on a further bullishnote with the price settling at US$31,049 per tonne, a jump of almost US$1,000. The positive momentumwas supported by strong demand, particularly fromoverseas buyers. Sentiment was upbeat with tradersactively participating in the market, which resulted inprices continuing their upward momentum to end thetrading week higher at US$31,500 per tonne.

Tin prices continued to surge ahead during the thirdtrading week surpassing the US$32,000 per tonne psy-chological level on 16 February. The local physical tinmarket recorded its months peak price of US$32,500per tonne the following day. The market, however,ended the week easier on technical correction.

During the fourth trading week, tin prices recoveredand stayed unchanged at US$32,400 per tonne for twoconsecutive days before softening on yet another tech-nical correction. Thereafter, tin prices traded rangebound between US$31,550 and US$31,950 per tonnebefore ending the month slightly higher at US$32,000per tonne.

Trading on the KLTM for the month of February wasconducted over 16 days. The average price recordedfor the month was at US$31,616 per tonne. The tradingvolume for the month slid to 878 tonnes from 1,036tonnes the preceding month. Februarys average trad-ing volume was 55 tonnes, slightly higher than theJanuarys average of 52 tonnes. The months highestdaily trading volume was 76 tonnes recorded on thefinal day of the month, while the lowest was 30 tonnesrecorded on 24 February.

February Tin Market ReviewFebruary Tin Market Review

Kuala Lumpur Tin Market (KLTM)


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highest price level of the month for cash tin ofUS$32,550 per tonne and for 3-month tin of

US$32,600 per tonne. They were recorded on 15 and16 February, respectively. Prices eased somewhatthereafter before rebounding slightly during the finaltrading day of the week.

The market strengthened further as it crossed over intothe fourth trading week. But the climb was rather short-lived as prices slid afterwards on technical correctionand lack of buying interest. Tin prices recovered duringthe final day of the trading week, and continued tostrengthen to end the trading month at US$32,265 andUS$32,250 per tonne for cash and 3-month tin, respec-tively.

The Februarys average LME cash and 3-month tinprices were US$31,526 and US$31,545 per tonne, re-spectively.

Tin trading on the New York market in February re-corded a similar pattern as tin trading on the LME. Theaverage New York spot tin price for the month rose toUS$32,412 per tonne compared to Januarys averageof US$28,036 per tonne. The highest and lowest pricesrecorded for the month of February were US$33,157and US$30,865 per tonne, respectively.

LME and New York Market

Tin trading on the London Metal Exchange (LME) dur-ing the month of February was again in line with the

movement in the trading of other base metals. Tinmetal was traded on the Exchange mostly on a strongnote.

The months opening price level for cash and 3-monthtin were US$29,985 and US$29,900 per tonne, respec-tively. They also happened to be the months lowestprice level. During the first trading week, tin pricesrose strongly supported by good buying interest.Tin prices continued to climb higher during the secondtrading week, but were checked by some technical cor-rections from rising further.

The third trading week saw the market recorded its


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News HighlightsNews Highlights

Perak will issue mining licences to all applicants whomeet the criteria set by the state government, saidPerak Mentri Besar Datuk Seri Dr Zambry Abdul Kadir.Denying that the state government was unfair whenawarding mining licences, he said, even non-miningassociations could apply for it. We do not practice anyform of discrimination. It is open for everyone to apply,irrespective of whether they are from mining associa-tions or non-mining associations. Every application fora mining licence is subject to stringent rules, he toldreporters after chairing the state executive councilmeeting here yesterday.

Dr Zambry was responding to a request by the PerakChinese Mining Association for the state governmentto adopt a fair policy in awarding mining licences. As-sociation president Choong Tien Chuan had claimedthat only a few of its 50 members were successful in

Ho Wah Genting Bhd sees good prospects in the tinindustry, given the recovery in the electrical and elec-tronic sector, particularly with the surging demand fromChina and Japan. It said the near-term shortage of tinsupplies was expected to give further support to theprices, which yesterday hit another historic high of[US$31,400] per tonne on strong technical buying. Thecompany, in a filing to Bursa Malaysia yesterday, saidit planned to further develop and upgrade its skills inmining so that it could capitalise on any viable busi-ness opportunities either in tin or other similar com-modities.

getting such licence. Dr Zambry said the state govern-ment had received many applications from former min-ing companies wishing to revive their operations.

(Source: The Star, 3 February 2011)

Ho Wah said it has appointed Guilin Research of Geol-ogy for Mineral Resources, UKM Pakarunding Sdn Bhdand an Australian-consultant geologist to undertakegeophysical studies on the mining site in PengkalanHulu.

(Source: The Star, 11 February 2011)

MB: Mining Licences for all Who Meet Criteria

Ho Wah: Tin Industry Future Good

News RoundNews Round--UpUp

Eight tin producing companies recorded an increase intheir production in 2010, with some even surpassingtheir earlier projection. The eight producers were Ji-angxi Nanshan Tin of China, an increase of 100%

(6,000 tonnes), Gejiu Zi-Li of China with 60.7% (9,000tonnes), Liuzhou China Tin of China with 36.2%(14,300 tonnes), Thaisarco of Thailand with 21.8%

2010 Global Top Tin Producers

(23,505 tonnes), Metallo Chimique of Belgium with14.4% (9,945 tonnes), Malaysia Smelting Corporationof Malaysia with 6.4% (38,737 tonnes), Minsur of Peruwith 6.3% (36,052 tonnes), and Yunnan Tin of China

(YTC) with 5.9% (59,180) increases.


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PT Timah, Indonesias largest tin mining company, pro-duced 40,413 tonnes of refined tin in 2010, a decreaseof 4,673 tonnes over to its 2009 production. Sales de-clined to 40,302 tonnes last year in comparison withthe 49,240 tonnes recorded in 2009. Timahs 2010 pro-duction did not meet the companys projected targetdue to unfavourable weather condition and other fac-tors.

The company recorded an unaudited net profit ofUS$89.5 million in 2010 compared to US$34.99 millionrecorded in 2009 due to higher average selling prices.Timahs average selling prices were aroundUS$19,000 per tonne last year, US$3,000 tonnes

Timahs 2010 Production Declined

higher than 2009. Unaudited sales rose from US$0.86billion in the previous year to US$0.93 billion in 2010,although sales volume for the year declined.

Some US$0.14 billion had been allocated by PT Timahthis year for capital spending and expanding its tinchemical plant.

Compania Minera Minsur SA's, Perus major tin miningcompany, recorded a huge increase in net profit duringthe fourth quarter of 2010. The company posted a netprofit of US$114 million in the last quarter of 2010,compared to US$73 million in the same quarter of2009 due to higher tin prices. The companys fourthquarter net sales were US$201 million, compared withUS$148 million for the same period a year earlier.For the full year of 2010, the companys net profits roseby 48 per cent to US$0.38 billion from US$0.26 billionin 2009. Some US$0.91 billion worth of sales weremade, an increase of 65 per cent. Meanwhile, the com-

Minsurs 2010 Sales and Profits Rose

panys tin-in-concentrates production at its San Rafaelmine declined by almost 10 per cent to 33,848 tonnesin 2010, while its refined tin production rose by 6.3 percent to 36,052 tonnes.

YTC, Chinas number one tin producer, maintained itsposition as the worlds largest producer. This would bethe companys sixth consecutive year at the top, and ithad managed to widen the gap on total annual produc-tion from nearest rivals, PT Timah and Minsur.

Indonesias January Tin Exports Rose

Recent data from Indonesias Ministry of Trade showedthat refined tin exports from the country in January2011 rose by 560 tonnes to 7,334 tonnes compared to6,774 tonnes recorded in January last year. The higherfigure was due to exporters expediting their shipmentbecause of the present high global tin price. Tradition-ally, tin production and exports in January were com-paratively low due to the after effects of the monsoonseason.Between January 2010 and January 2011, a total of93,047 tonnes of tin were checked for exports. The tin

exports check system was first introduced in 2007, andIndonesias Ministry of Trade obtains its figures fromchecks conducted by several appointed surveyingcompanies before the metal were exported.

(Source: Tin in the News, ITRI Ltd. UK)


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Malaysian Tin Bulletin-Februari'11