KL tin market faces uncertain week

An uncertain trading week awaits the Kuala Lumpur Tin Market in the first trading week of August amid the stalemate over the US debt ceiling and lingering Euro zone crisis.

A dealer said trading could be narrow-ranged as investors would refrain from holding long positions amid concerns over the debt impasse and its potential effects on global growth.

"We expect position taking to be limited with the metal likely to move between US$28,500 and US$29,000 per tonne next week," he added.

On the brighter side, another dealer said the market could be supported by speculative buying, due to the weaker US dollar, which could prompt interest in US dollar based-assets including gold and precious metals, copper and base metals.

For the week just-ended, the KLTM gained US$750 to US$28,730 per tonne.

Weekly turnover increased to 282 lots, from 231 lots, recorded the previous week, with active participation noted from Japanese, local and European traders.

The price differential between the KLTM and the LME widened to a premium of US$535 per tonne, from US$85 per tonne, recorded last Friday. -- Bernama