Tin hits 3-1/2-year high on Congo mine supply fears

Tin prices jumped to their highest in more than three and a half years on Friday as talk of mine supply disruptions in the Democratic Republic of Congo fanned fears of shortages, even as traders said speculation over a force majeure was untrue.

Three-month tin on the London Metal Exchange was up 1.9% at $38,760 per metric ton as of 1046 GMT. The metal used in circuit-board soldering rose as much as 2.3% earlier in the session to $38,930, the most since May 9, 2022.

The extension of a ban on manual mining in two DRC provinces and escalating conflict in the east of the country have "raised concerns about transport disruptions from the Bisie mine, which accounts for about 8% of global tin ore production," broker Marex said in a note.

Traders, however, denied talk of force majeure having been declared at the Bisie mine.

"Additionally, although Myanmar's Wa State has issued mining licenses, actual production resumptions are significantly lagging due to the rainy season, equipment issues, and labour shortages," Marex added.

In other metals, copper breached $11,000 a ton again, reaching $11,010 after China's smelter group said its members would cut mine-fed capacity by 10%. The metal used in power and construction was up 0.5% at $10,998.50 as of 1046 GMT, on course for a weekly gain of 2% and a rise of 1% this month.

"I see copper testing $11,000 again before Christmas and pushing through to $11,500 in the early new year," said SP Angel analyst John Meyer, citing a series of mine supply constraints.

Copper inventories in warehouses monitored by the Shanghai Futures Exchange <CU-STX-SGH> dropped 11.5% over the past week to 97,930 tons, the bourse said on Friday.

Aluminium rose 0.6% to $2,844.50 and zinc added 0.6% to $3,031. Nickel climbed 0.4% to 14,885 and lead nudged up 0.2% to $1,991.