The latest re-issued tender by South Korea’s Public Procurement Service offered further evidence of supply tightness and rising physical tin premiums in Asia. The agency had bought 200 tonnes of standard grade Malaysian 99.85% tin at a premium of $370 per tonne c.i.f. over the London Metal Exchange cash price to be shipped by June 2 to the port of Incheon, the agency said on its website on Friday. The contract was awarded to Daewoo International. At its previous tender for standard grade tin, for shipment by 30 April, the premium was $230/tonne.
Previous tender results have also shown a sharp rise in premiums for 99.9% high grade tin, the last contract being awarded at a c.i.f. premium of $530/tonne for 31 May arrival. The PPS plans to buy 1,910 tonnes of tin in 2010 and has so far purchased 800 tonnes.
