LME MIDDAY

LONDON (Dow Jones)--Traders expect further gains for London Metal Exchange tin Friday after the metal hit a record high earlier due to ongoing supply uncertainties in Indonesia.
Three-month tin reached an all-time high of $13,300 a metric ton at 1030 GMT, up roughly 1.5% from Thursday due to Indonesian problems, said brokers.
Earlier Friday, an Indonesian trade official said state-owned tin producer PT Timah Tbk. can no longer legally export tin, as it hasn't been reissued an export license under new regulations.
Indonesia recently shut down its private mining and smelting operations on Bangka island, where the country's largest tin reserve is located.
Indonesia's PT Koba Tin - a key industry player - said recently that it is still allowed to mine and smelt tin from Bangka-Belitung province while it is under police investigation. Industry sources say Koba, which produces around 24,000 tons of tin a year, is only shipping about 20% of its normal amount.
At the same time, uncertainty over the fate of Bolivia's Vinto smelter since it was seized from Switzerland's Glencore International AG and renationalized provided underlying price support.
In addition, a decline in tin stocks by 20 tons to 10,225 tons Friday has provided a price boost. Inventories have fallen roughly 20% since the start of 2007.
In other metals, three-month nickel traded just off Thursday's record high of $39,501/ton due to trade selling, said a base metals trader. Adding to price pressure, nickel stocks rose by 162 tons to 4,152 tons Friday.
However, with canceled warrants - or material accounted for and to be drawn down at a later date - at 52% Friday, available stocks comprise less than half a day's worth of global nickel consumption.
Nickel eyes $40,000 a ton in the near-term, said the trader. At 1030 GMT, nickel traded at $39,200/ton, down 0.7% from Thursday.
Meanwhile, three-month copper consolidated after Thursday's run-up. At 1030 GMT, copper traded at $5,832/ton, down 0.3% from Thursday.
A sharp drawdown in lead stocks by 900 tons to 33,300 tons Friday bolstered lead prices up to a two-month high. Lead inventories have fallen over 20% from the start of 2007. At 1030 GMT, lead traded at $1,760/ton, up 0.3% from Thursday.
At 1030 GMT, three-month aluminum traded at $2,809/ton, down roughly 0.2% from Thursday while three-month zinc traded at $3,405/ton, down 0.7% from Thursday.