Jump in Premiums in Korea Tender

SHANGHAI, Junly 1 -- South Korea's Public Procurement Service paid a greatly increased premium of $930/tonne cif Incheon over the LME price for 200 tonnes of 99.9% high grade tin this week. The metal will be supplied by Daewoo International and is for delivery by September 15. Its last purchase of high grade tin, booked in March for delivery by May31, was at a premium of $530/tonne, while last week it booked 200 tonnes of standard 99.85% tin for mid-September delivery at a premium of $320/tonne.

The agency, which acts as a purchasing intermediary for small and medium-sized tin consumers in Korea, plans to buy a total of 1,910 tonnes of tin in 2010. It has recently passed on several tenders for higher quality material due to lack of bidders, reflecting the tight supply situation in the Asian market.