Sept. 5 (Bloomberg) -- Tin prices rose to the highest in almost four weeks in London amid mounting concern that supplies will be limited as producers restrict exports in Indonesia, the world’s largest shipper.
Smelters in Indonesia stopped deliveries this month as the Jakarta Futures Exchange awaited approval to trade tin contracts. A rule requiring ingots to be traded locally before shipping hampered transactions. PT Timah, the third-biggest producer, halted exports effective Aug. 30.
“People are worried about where the tin supply is going to come from,” Gayle Berry, an analyst at Barclays Plc in London, said in a telephone interview. “The Indonesian situation has a potential to seriously tighten the market.”
On the London Metal Exchange, tin for delivery in three months rose 0.8 percent to settle at $22,050 a metric ton at 5:51 p.m. Earlier, the metal reached $22,299.50, the highest since Aug. 9.
The commodity settled above the 200-day moving average, signaling an extended rally, according to some who study price charts. This year, tin has dropped 5.8 percent.
Demand will exceed production for the fifth straight year in 2014, according to BNP Paribas SA. Prices will average $24,000 in the fourth quarter, according to Barclays.
Copper fell 0.2 percent to $7,108 a ton ($3.22 a pound) on the LME. In New York, futures for December delivery gained 0.1 percent to $3.244 a pound on the Comex.
A government report tomorrow will show employers in the U.S., the world’s second-biggest copper consumer, hired more workers last month than in July, according to economists surveyed by Bloomberg.
Aluminum and nickel rose in London, while lead and zinc dropped.
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