The Price of Tin In Malaysia Commodity Update

The price of Tin in Malaysia stocks strengthened on trading Thursday (1/20). Strengthening the price of Tin Tin production decline triggered in China.

Nine of the major Tin producers of China, including the world's largest Tin supplier Yunnan Tin Company, on Wednesday (20/01) announced that they would reduce their combined production by about 17000 tons or 12% on an annual basis by 2016 in response to market conditions the losers. The industry in China has been experiencing a negative impact with thecontinued decline in prices until 2015, as evidenced by reports of financial losses and a significant decline in production that was made in the last six months.

The production of nine participating manufacturers (YTC, Chinese Tin, Chengfeng, Zili, Kaimeng, Yunxin, Jinye, Nanshan and Weitai) of approximately 140,000 tonnes by 2015. This is equivalent to more than 80% of the domestic production of lead metal of China and about 40% of theworld total.

The Tin price has plunged 30 percent in the past year in London amid a slowdown in China, the biggest consumer, and a weakening in global stocks and commodities markets. While Indonesia,the top exporter, has also been holding the supply, prices continue to fall on weakening demand and increased production from Myanmar. The cut is equivalent to about 5 percent of its global production last year.

The price of Tin in Malaysia commodity stock exchange observed increase this afternoon. This industrial metal prices traded at position 13450 dollars per ton, up by 150 dollars.

We estimate that Malaysia Tin price movements on the next trade for the short-term will try to maintain the resistance level in the face of strengthening the position of 13850 13650 dollar and dollar. But if there is a retreat and weaken the price of copper will face the support level at 13250 13050 dollar and dollar.