LONDON: Tin prices jumped to their highest in more than three and a half years on Friday as talk of mine supply disruptions in the Democratic Republic of Congo fanned fears of shortages, even as traders said speculation over a force majeure was untrue.
Three-month tin on the London Metal Exchange was up 2.5percent at USD38,990 per metric ton in official open-outcry trading. The metal used in circuit-board soldering earlier in the session hit USD39,220, the most since May 2022.
The extension of a ban on manual mining in two DRC provinces and escalating conflict in the east of the country have “raised concerns about transport disruptions from the Bisie mine, which accounts for about 8 percent of global tin ore production,” broker Marex said in a note. Traders, however, denied talk of force majeure having been declared at the Bisie mine.
“Additionally, although Myanmar’s Wa State has issued mining licenses, actual production resumptions are significantly lagging due to the rainy season, equipment issues, and labour shortages,” Marex added. In other metals, copper breached USD11,000 a ton again, reaching USD11,045 after China’s smelter group said its members would cut mine-fed capacity by 10percent. The metal used in power and construction was up 0.4 percent at USD10,985 in official activity, on course for a weekly gain of 2percent and a rise of 1percent this month.
“I see copper testing USD11,000 again before Christmas and pushing through to USD11,500 in the early new year,” said SP Angel analyst John Meyer, citing a series of mine supply constraints. Copper inventories in warehouses monitored by the Shanghai Futures Exchange dropped 11.5 percent over the past week to 97,930 tons, the bourse said on Friday.
Aluminium rose 0.8 percent to USD2,850 and zinc added 1.0percent to USD3,044. Nickel climbed 0.3percent to USD14,875 and lead nudged up 0.4percent to USD1,994.
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