Last Updated : September 09, 2011 11:52
Tin poised to outperform nickel again
By Allen Sykora BNP Paribas looks for
Tin to start building a premium over
Nickel again. As tin prices fell since spring, this premium collapsed from more than $7,000 to $1,500 per metric ton.
However, BNP says conditions in the stainless
Steel market have deteriorated since the first quarter. The bank looks for a supply surplus in the second half to offset a deficit in the first half.
Nickel now appears to be heading into a prolonged period of a structural surplus, while tin is likely to remain in an underlying deficit at least through 2012, with a limited increase in mine production, says BNP Paribas.
Whereas the general outlook for base metals is not as bullish as at one time, BNP still expects
Tin to recover strongly in the coming months.
“It may eventually approach its April peak. But the
Nickel price will remain under pressure,” says senior metals strategist Stephen Briggs. “This suggests that tin’s premium over nickel may not only return to USD 7,000/t but comfortably exceed it.”
By Allen Sykora of Kitco News; asykora@kitco.com
NCDEX SUGARM200JUN12 20 June 2012
contract was trading at
Rs 0 . What's your view on it?
