LME REVIEW

LONDON (Dow Jones)--London Metal Exchange tin built upon earlier strength, soaring to a fresh record high Wednesday, with market participants keeping a close watch on the developments in Indonesia for further price direction, traders said.
Three-month tin traded just shy of the $14,000 a metric ton mark driven by follow-through momentum buying after a strong morning session in Europe, a trader said.
News that seven Indonesian tin producers may be granted export licenses on Feb. 23 - including the world's largest integrated miner PT Timah - has the potential to send prices lower, but traders have said they will wait before believing the news. This uncertainty has helped push prices higher near term.
Supply concerns in Indonesia have dominated the tin market of late. Indonesia recently shut down its private mining and smelting operations on Bangka island, where the country's largest tin reserve is located, over allegations of environmental damage and tax evasion.
The Trade Ministry then set new requirements on tin exports, including a minimum 99.85% purity standard, and demanded producers prove they mine tin ore from their own concessions and have paid royalties before they can export.
For the time being, further upside is expected until clarification of the Indonesian situation, traders said.
Meanwhile, several of the base metals rose during afternoon European hours due to bargain-hunting, said Michael Widmer of Calyon.
Three-month copper rose over 1% to a PM kerb of $5,790/ton from Tuesday, while three-month aluminum rose 0.5% to a PM kerb of $2,757/ton.
Earlier, prices had fallen due to a widening of the spreads and a push beneath key technical sell-stops, said an aluminum trader. However, good support is seen around $2,740/ton and then $2,680/ton, the trader added.
Three-month nickel remained slightly under pressure on profit-taking and fell 0.2% to a PM kerb of $39,800/ton.
However, LME nickel stocks fell 468 tons to 3,930 tons Wednesday, which provides good price support. With canceled warrants - or material accounted for and to be drawn down at a later date - at 47% Wednesday, available stocks comprise less than one day's worth of global nickel consumption.
Three-month lead edged back up towards its recent record high of $1,845/ton as strength spread across the entire complex.
Moreover, ongoing supply concerns at Xstrata's 161,000-ton Northfleet lead refinery in the U.K. further supported prices. Xstrata has temporarily restricted deliveries to Northfleet, which takes its feedstock from Mount Isa in Australia. Prices in dollar a metric ton.
3 Months Metal Bid-Ask Change from
Tuesday PM kerb
Copper 5790.0-5800.0 Up 70
Lead 1825.0-1826.0 Dn 5
Zinc 3350.0-3360.0 Up 25
Aluminum 2757.0-2758.0 Up 15
Nickel 39500.0-39505.0 Dn 300
Tin 13825.0-13850.0 Up 335
Aluminum Alloy 2200.0-2210.0 Unch
Aluminum Alloy 2170.0-2180.0 Up 10