THE Kuala Lumpur Tin Market (KLTM) is expected to stage a better performance next week with the price likely to be traded at the level of US$17,000 per tonne, a dealer said.
He said if the KLTM is able to hit the US$17,000 a tonne level, the price is set to go up further amid strong demand from China, Japan, South Korea, Taiwan, Pakistan, Bangladesh, and the European Union.
The dealer said the local tin price has been on the uptrend since February with prices ranging from US$16,400 per tonne to US$16,900 per tonne.
“However, failing to reach the US$17,000 level, the price may retreat to as low as US$16,700 per tonne,” he told Bernama.
He said besides the movement on the London Metal Exchange (LME), Covid-19 news development would continue to influence the performance of the local tin market.
“Fears over the economic and supply chains fallout from Covid-19 are set to continue to sweep across the globe,” he said.
During the week just ended, the tin market was mostly higher, tracking the LME, Covid-19 and local political developments.
The dealer said market sentiment also improved compared to last week amid the relatively stable political situation following the appointment of Tan Sri Muhyiddin Yassin as the eighth prime minister.
On a Friday-to-Friday basis, the price on the KLTM was US$450 higher at US$16,900 per tonne.
The price differential between the KLTM and LME was at a discount of US$155 per tonne this week compared with a premium of US$125 per tonne last week.
Weekly turnover improved to 94 tonnes from 93 tonnes last week, with the bulk of the trade involving buyers from China, South Korea, Japan, Taiwan, European countries, Pakistan and Bangladesh.
The market also saw sellers participation from the local market and Hong Kong. – March 7, 2020, Bernama