Malaysian Tin Bulletin-Februari'11

MALAYSIAN TIN BULLETIN
FEBRUARY 2011
February Tin Market Review

Kuala Lumpur Tin Market (KLTM)
Tin trading on the KLTM during the month of February was on an upward trend backed by supply constraint and increased demand. The opening price for the month was US$30,050 per tonne, unchanged from Januarys closing price, which was also the months lowest price level. It was a short first trading week as the market closed for the Federal Territory Day on 1 February and the Chinese New Year holidays on 3 and 4 of February 2011. The second trading week opened on a further bullish note with the price settling at US$31,049 per tonne, a jump of almost US$1,000. The positive momentum was supported by strong demand, particularly from overseas buyers. Sentiment was upbeat with traders actively participating in the market, which resulted in prices continuing their upward momentum to end the trading week higher at US$31,500 per tonne. Tin prices continued to surge ahead during the third trading week surpassing the US$32,000 per tonne psychological level on 16 February. The local physical tin market recorded its months peak price of US$32,500 per tonne the following day. The market, however, ended the week easier on technical correction. During the fourth trading week, tin prices recovered and stayed unchanged at US$32,400 per tonne for two consecutive days before softening on yet another technical correction. Thereafter, tin prices traded range bound between US$31,550 and US$31,950 per tonne before ending the month slightly higher at US$32,000 per tonne. Trading on the KLTM for the month of February was conducted over 16 days. The average price recorded for the month was at US$31,616 per tonne. The trading volume for the month slid to 878 tonnes from 1,036 tonnes the preceding month. Februarys average trading volume was 55 tonnes, slightly higher than the Januarys average of 52 tonnes. The months highest daily trading volume was 76 tonnes recorded on the final day of the month, while the lowest was 30 tonnes recorded on 24 February.
FEBRUARY 2011
LME and New York Market

Tin trading on the London Metal Exchange (LME) during the month of February was again in line with the movement in the trading of other base metals. Tin metal was traded on the Exchange mostly on a strong note. The months opening price level for cash and 3-month tin were US$29,985 and US$29,900 per tonne, respectively. They also happened to be the months lowest price level. During the first trading week, tin prices rose strongly supported by good buying interest. Tin prices continued to climb higher during the second trading week, but were checked by some technical corrections from rising further. The third trading week saw the market recorded its The Februarys average LME cash and 3-month tin prices were US$31,526 and US$31,545 per tonne, respectively. Tin trading on the New York market in February recorded a similar pattern as tin trading on the LME. The average New York spot tin price for the month rose to US$32,412 per tonne compared to Januarys average of US$28,036 per tonne. The highest and lowest prices recorded for the month of February were US$33,157 and US$30,865 per tonne, respectively. highest price level of the month for cash tin of US$32,550 per tonne and for 3-month tin of US$32,600 per tonne. They were recorded on 15 and 16 February, respectively. Prices eased somewhat thereafter before rebounding slightly during the final trading day of the week. The market strengthened further as it crossed over into the fourth trading week. But the climb was rather shortlived as prices slid afterwards on technical correction and lack of buying interest. Tin prices recovered during the final day of the trading week, and continued to strengthen to end the trading month at US$32,265 and US$32,250 per tonne for cash and 3-month tin, respectively.
FEBRUARY 2011
News Highlights
MB: Mining Licences for all Who Meet Criteria
Perak will issue mining licences to all applicants who meet the criteria set by the state government, said Perak Mentri Besar Datuk Seri Dr Zambry Abdul Kadir. Denying that the state government was unfair when awarding mining licences, he said, even non-mining associations could apply for it. We do not practice any form of discrimination. It is open for everyone to apply, irrespective of whether they are from mining associations or non-mining associations. Every application for a mining licence is subject to stringent rules, he told reporters after chairing the state executive council meeting here yesterday. Dr Zambry was responding to a request by the Perak Chinese Mining Association for the state government to adopt a fair policy in awarding mining licences. Association president Choong Tien Chuan had claimed that only a few of its 50 members were successful in getting such licence. Dr Zambry said the state government had received many applications from former mining companies wishing to revive their operations. (Source: The Star, 3 February 2011)
Ho Wah: Tin Industry Future Good

Ho Wah Genting Bhd sees good prospects in the tin industry, given the recovery in the electrical and electronic sector, particularly with the surging demand from China and Japan. It said the near-term shortage of tin supplies was expected to give further support to the prices, which yesterday hit another historic high of [US$31,400] per tonne on strong technical buying. The company, in a filing to Bursa Malaysia yesterday, said it planned to further develop and upgrade its skills in mining so that it could capitalise on any viable business opportunities either in tin or other similar commodities. Ho Wah said it has appointed Guilin Research of Geology for Mineral Resources, UKM Pakarunding Sdn Bhd and an Australian-consultant geologist to undertake geophysical studies on the mining site in Pengkalan Hulu. (Source: The Star, 11 February 2011)
News Round - Up
2010 Global Top Tin Producers
Eight tin producing companies recorded an increase in their production in 2010, with some even surpassing their earlier projection. The eight producers were Jiangxi Nanshan Tin of China, an increase of 100% (6,000 tonnes), Gejiu Zi-Li of China with 60.7% (9,000 tonnes), Liuzhou China Tin of China with 36.2% (14,300 tonnes), Thaisarco of Thailand with 21.8% (23,505 tonnes), Metallo Chimique of Belgium with 14.4% (9,945 tonnes), Malaysia Smelting Corporation of Malaysia with 6.4% (38,737 tonnes), Minsur of Peru with 6.3% (36,052 tonnes), and Yunnan Tin of China (YTC) with 5.9% (59,180) increases.
FEBRUARY 2011
YTC, Chinas number one tin producer, maintained its position as the worlds largest producer. This would be the companys sixth consecutive year at the top, and it had managed to widen the gap on total annual production from nearest rivals, PT Timah and Minsur.
Timahs 2010 Production Declined

PT Timah, Indonesias largest tin mining company, produced 40,413 tonnes of refined tin in 2010, a decrease of 4,673 tonnes over to its 2009 production. Sales declined to 40,302 tonnes last year in comparison with the 49,240 tonnes recorded in 2009. Timahs 2010 production did not meet the companys projected target due to unfavourable weather condition and other factors. The company recorded an unaudited net profit of US$89.5 million in 2010 compared to US$34.99 million recorded in 2009 due to higher average selling prices. Timahs average selling prices were around US$19,000 per tonne last year, US$3,000 tonnes higher than 2009. Unaudited sales rose from US$0.86 billion in the previous year to US$0.93 billion in 2010, although sales volume for the year declined. Some US$0.14 billion had been allocated by PT Timah this year for capital spending and expanding its tin chemical plant.
Minsurs 2010 Sales and Profits Rose

Compania Minera Minsur SA's, Perus major tin mining company, recorded a huge increase in net profit during the fourth quarter of 2010. The company posted a net profit of US$114 million in the last quarter of 2010, compared to US$73 million in the same quarter of 2009 due to higher tin prices. The companys fourth quarter net sales were US$201 million, compared with US$148 million for the same period a year earlier. For the full year of 2010, the companys net profits rose by 48 per cent to US$0.38 billion from US$0.26 billion in 2009. Some US$0.91 billion worth of sales were made, an increase of 65 per cent. Meanwhile, the companys tin-in-concentrates production at its San Rafael mine declined by almost 10 per cent to 33,848 tonnes in 2010, while its refined tin production rose by 6.3 per cent to 36,052 tonnes.
Indonesias January Tin Exports Rose

Recent data from Indonesias Ministry of Trade showed that refined tin exports from the country in January 2011 rose by 560 tonnes to 7,334 tonnes compared to 6,774 tonnes recorded in January last year. The higher figure was due to exporters expediting their shipment because of the present high global tin price. Traditionally, tin production and exports in January were comparatively low due to the after effects of the monsoon season. Between January 2010 and January 2011, a total of 93,047 tonnes of tin were checked for exports. The tin exports check system was first introduced in 2007, and Indonesias Ministry of Trade obtains its figures from checks conducted by several appointed surveying companies before the metal were exported. (Source: Tin in the News, ITRI Ltd. UK)
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MALAYSIAN TIN BULLETIN

February Tin Market Review