KUALA LUMPUR: The Kuala Lumpur Tin Market (KLTM) is expected to continue its upward momentum next week with the price likely to rise above US$17,000 per tonne.
A dealer said investors cheered China’s move to halve tariffs on US$75 billion worth of imports from the United States (US) as it moves to implement the phase one trade deal with the US and protect its economy from the impact of the 2019 Novel Coronavirus outbreak.
The country will be halving its tariffs on some US products to five per cent and 2.5% respectively, starting Feb 14, according to a statement from China’s State Council Tariff Commission.
Meanwhile, the dealer said any downtrend in the local tin price may be capped at US$16,500 per tonne.
He said the local market will continue to track the performance of the benchmark London Metal Exchange.
During the week just ended, the tin market remained high for five consecutive days on continuous demand, with prices ranging between US$16,280 and US$16,750 a tonne.
On a Friday-to-Friday basis, the price on the KLTM rose US$730 per tonne to US$16,750 per tonne from US$16,020 per tonne earlier.
The price differential between the KLTM and the London Metal Exchange (LME) was at a premium of US$55 per tonne compared with a discount of US$15 a tonne previously.
Weekly turnover declined to 83 tonnes from 89 tonnes last week, with the bulk of trade involving buyers from China, South Korea, Japan, Taiwan, European countries, Pakistan, Bangladesh and Hong Kong. – Feb 08, 2020, Bernama.
