Shanghai tin drops as Chinese power curbs spark demand worries

Shanghai tin drops as Chinese power curbs spark demand worries
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(Sept 28): Shanghai tin prices fell on Tuesday, retreating from record highs hit in the previous session, as power restrictions in top consumer China raised worries over demand.

The most-traded November tin contract on the Shanghai Futures Exchange fell 4.5% to 269,450 yuan ($41,670.47) a tonne at 0205 GMT, falling from a record 290,510 yuan-a-tonne record level hit on Monday.

As solder companies and tin chemical producers in parts of China operated at reduced capacity due to electricity usage curbs, demand for refined tin reduced, the International Tin Association's (ITA) Beijing branch said on Monday.

"The price of tin, which was previously supported by fundamentals, may face greater downward pressure," the ITA added.

Prices of the metal have surged 91.5% this year, as of Monday's close, backed by pandemic-led supply disruptions in major producing countries and booming demand for electronics.

FUNDAMENTALS

* LME copper eased 0.2% to $9,346 a tonne, nickel dropped 1.5% to $18,660 a tonne while zinc rose 0.2% to $3,075 a tonne.

* ShFE nickel dropped 3.1% to 141,050 yuan a tonne, aluminium declined 2% to 22,495 yuan a tonne, zinc was down 1.4% to 22,710 yuan a tonne and copper eased 0.3% to 69,140 yuan a tonne.

* Australia-based miner MMG Ltd said on Monday it would stop operations at its copper mine at Las Bambas in Peru this week, as community protests in a nearby province has upended transport.