Tin lower in London as China exports decline

Base metals prices were lower Friday as tin approached its biggest weekly decline in twenty years on news reports that exports of the metal from China dropped 21 percent in June from the previous year at the same time after rising 36 percent in the second quarter and going up by 72 percent in the first half of 2009.

The recent decline after those gains are seen as an indication that demand is declining.

Tin dropped $705 to $11,900 per tonne in late afternoon trade on the London Metal Exchange as inventories stood at 17,720 in LME warehouses, twice that at the end of 2008.

Copper prices were also lower in late afternoon trade in London, dropping $16 to $4,879 per tonne even though inventories fell 1.3 percent on the session to 258,575 tones as China’s imports of the metal used in manufacturing and construction were up 53,333 tonnes from May’s levels.

In New York, meanwhile, September copper dropped 3 cents to $2.21 per pound.

Aluminium, lead, zinc and nickel were all also lower in late London trade.

Among precious metals, August gold was down $3.90 to $912.30 per troy ounce in New York, while September silver was 29 cents lower to $12.65 per troy ounce and October platinum dropped $2.90 to $1,107.60 per troy ounce.