With supply worries and increased demand, the price of Tin again surged overnight on the LME to record highs. With some analysts now talking about a price around $17000 usd a tonne.
With MLX Australia's Number 1 Tin producer and the Worlds 6th largest it is the best leverage on the ASX to rising Tin prices.
With a sustained increase in buying volume over the last couple of weeks and a reduction of the number of shares available on the sell side it looks like MLX will continue its march higher with the 50c mark looking very likely in the very near future.
With all the added media exposure about the rise in Tin prices it won't take long before investors start to jump aboard the MLX story.
With buyers lining up now 2.65 million above the 40c mark compared to just 1.2 million on the entire sell side, putting upward pressure on the shareprice as investors scramble to get in.
Metals - Tin surges to new record high as supply worries fuel spec buying
LONDON (Thomson Financial) - Tin surged to a fresh record high as ongoing supply worries in key producer Indonesia and a break of key technical levels fuelled buying amongst speculative traders.
At 9.42 am, LME tin for three-month delivery was trading up at 15,675 usd a tonne against 14,950 usd at the close yesterday. Earlier, tin rose to 15,700 usd, its highest point since the new contract started trading in 1989.
'I think tin is mainly being driven by investment demand and technical factors... having broken above 15,100 usd that's given it upside. I don't think anything has changed in the market ... production from Indonesia is much lower and that's the main thing,' said Peter Kettle of the Tin Council.
Indonesia, the world's second largest producer after China, has been engaged in a crackdown on illegal tin mining and smelting that has crimped output in the country for much of this year.
Elsewhere, lead surged to another all time record high of 3,310 usd a tonne, before dipping slightly to 3,300 usd against 3,231 usd at the close yesterday.
The heavy metal has rocketed to a series of record highs in recent months as supplies from Australia remain restricted and lead exports from China continue to fall.
These worries have been exacerbated this week by news that an explosion at Doe Run's Herculaneum refinery in Missouri last Friday will see modest disruptions to supply of lead and lead alloys.
Copper was up at 7,855 usd a tonne against 7,825 usd at the close yesterday, as traders took the view strong Chinese economic growth will fuel demand at a time when supply remains crimped by labour unrest in the Americas.
In other metals traded, ali was up at 2,810 usd a tonne against 2,787 usd at the close yesterday, nickel was up at 33,550 usd a tonne against 32,700 usd, while zinc was up at 3,565 usd a tonne against 3,505 usd
With MLX Australia's Number 1 Tin producer and the Worlds 6th largest it is the best leverage on the ASX to rising Tin prices.
With a sustained increase in buying volume over the last couple of weeks and a reduction of the number of shares available on the sell side it looks like MLX will continue its march higher with the 50c mark looking very likely in the very near future.
With all the added media exposure about the rise in Tin prices it won't take long before investors start to jump aboard the MLX story.
With buyers lining up now 2.65 million above the 40c mark compared to just 1.2 million on the entire sell side, putting upward pressure on the shareprice as investors scramble to get in.
Metals - Tin surges to new record high as supply worries fuel spec buying
LONDON (Thomson Financial) - Tin surged to a fresh record high as ongoing supply worries in key producer Indonesia and a break of key technical levels fuelled buying amongst speculative traders.
At 9.42 am, LME tin for three-month delivery was trading up at 15,675 usd a tonne against 14,950 usd at the close yesterday. Earlier, tin rose to 15,700 usd, its highest point since the new contract started trading in 1989.
'I think tin is mainly being driven by investment demand and technical factors... having broken above 15,100 usd that's given it upside. I don't think anything has changed in the market ... production from Indonesia is much lower and that's the main thing,' said Peter Kettle of the Tin Council.
Indonesia, the world's second largest producer after China, has been engaged in a crackdown on illegal tin mining and smelting that has crimped output in the country for much of this year.
Elsewhere, lead surged to another all time record high of 3,310 usd a tonne, before dipping slightly to 3,300 usd against 3,231 usd at the close yesterday.
The heavy metal has rocketed to a series of record highs in recent months as supplies from Australia remain restricted and lead exports from China continue to fall.
These worries have been exacerbated this week by news that an explosion at Doe Run's Herculaneum refinery in Missouri last Friday will see modest disruptions to supply of lead and lead alloys.
Copper was up at 7,855 usd a tonne against 7,825 usd at the close yesterday, as traders took the view strong Chinese economic growth will fuel demand at a time when supply remains crimped by labour unrest in the Americas.
In other metals traded, ali was up at 2,810 usd a tonne against 2,787 usd at the close yesterday, nickel was up at 33,550 usd a tonne against 32,700 usd, while zinc was up at 3,565 usd a tonne against 3,505 usd