Tin hits record high at Rs 580

Decline in LME stocks pushes up prices over $10,000 mark

The spot prices of tin hit an all-time high on the London Metal Exchange (LME) and the domestic market on Tuesday, as inventories at the LME warehouses continued their decline for the last ten days.

For the first time, tin prices crossed $10,000 a tonne mark on the LME on Monday to hit an all-time high and close at $10,100 a tonne "" a rise of 11 per cent during the last five trading sessions.

On Monday, the prices rose by $170 or 1.71 per cent to close at $10,100 from the Friday's close of $9,930.

Taking a cue from the LME, spot tin prices on the domestic market too hit a record high of Rs 580 a kg on Tuesday, rising by Rs 30 a kg or 5.45 per cent from the Monday's close of Rs 550.

The metal shot up by Rs 60 or 12 per cent from the October 10 closing of Rs 520. The Tuesday's closing is the highest ever since June 1996.

The metal had touched an all-time low of Rs 280 a kg on March 3, 2002. Inventories at the LME warehouses were down by 235 mt at 12,260 mt on Monday from 12,595 on Friday.

The rise in consumption and further concerns over supply in an increasingly tight market have led to the stocks at LME warehouses depleting by 4,565 mt in the past ten months.

On the MX the November contracts were quoting at Rs 458.50 on Monday, up 8 per cent over the last ten trading sessions.