Tin/Copper price ratio may reach at least 4:1 in H1’15: BNP Paribas

UNITED KINGDOM May 30 2014 11:09 AM

LONDON (Scrap Register): BNP Paribas continues to forecast that the tin/copper price ratio will reach at least 4:1 in H1’15 from less than 3.4:1 today.

BNP Paribas describes tin as coiled like a spring and said that still it looks for the metal to outperform copper.

The bank sees demand improving but growth muted, rising 3% in 2014-15.

Meanwhile, there are constraints on existing produces and a lack of new mines will limit output growth. The bank calls for world tin mine production to be barely flat in 2014 and rise by only 4%-5% next year despite an expected favorable price environment, said senior metals strategist Stephen Briggs.

Tin remains on track to eventually hit $25,000 a metric ton, says the bank.

BNP Paribas also retain their longstanding trade recommendation: long tin versus short copper.