New York – Tin soared to its highest in at least 17 years after PT Timah, the world’s largest miner of the metal, said it will cut production, fuelling speculation about a supply shortfall.
PT Timah will cut output this year by 8 percent to 38,407 metric tons, Thobrani Alwi, the Jakarta-based company’s president director, said Monday. Inventory monitored by the London Metal Exchange slumped 27 percent this year and is equal to less than 12 days of global consumption.
Timah’s announcement “means supply will be really tight in the second half,” said Neil Buxton of London-based GFMS Metals Consulting Ltd.
Tin for delivery in three months on the LME rose $1,075 to $10,850 a ton Monday. Earlier it soared as much as $1,225, or 13 percent, to $11,000, the highest price and largest one-day gain since at least 1989, according to Bloomberg data. Tin has risen 67 percent this year.
Bolivia is also producing less tin due to violent clashes between miners, contributing to tight supply, Buxton said.
