KUALA LUMPUR: The Kuala Lumpur Tin Market (KLTM) is expected to continue its downward momentum next week due to the deadly Wuhan coronavirus outbreak as well as the long Lunar New Year holiday.
The tin price is expected to trade at US$16,700 to US$17,100 per tonne next week, tracking the weak performance of the benchmark London Metal Exchange (LME).
“Demand will continue to decline as China which is the biggest metal buyer is now in hot waters due to the worsening situation of the outbreak. Several of its cities are now on lockdown with no inbound or outbound travel allowed,” he said.
Western buyers he added, have opted out from indulging in buying activities at the local market due to the price differential between LME and KLTM.
During the week just-ended, the tin price ranged between US$17,600 and US$17,150 a tonne.
Meanwhile, on a Friday-to-Friday basis, the price on the KLTM declined US$450 per tonne to US$17,150 compared with US$17,600 per tonne last Friday.
The price differential between the KLTM and the London Metal Exchange (LME) was at a premium of US$100 per tonne compared with a discount of US$40 a tonne previously.
Weekly turnover declined to 90 tonnes from 101 tonnes last week, with the bulk of trade involving buyers from China, South Korea, Japan, Taiwan, Europe, and Hong Kong. – Jan 25, 2020, Bernama
