Tin in Deficit in 2010 - Analysts

LONDON, July 20 -- Analysts are calling for deficits in tin in 2010 and shrinking surpluses in copper, nickel, lead, zinc and aluminium.

    Copper's market balance was seen at 400,000 tonnes in surplus in 2009 and 227,300 tonnes oversupplied in 2010, with a minority of forecasters calling for a market in deficit in 2010.

    The surplus in aluminium in 2009 was seen between 746,000 tonnes and 2.5 million tonnes with the median forecast for 1.7 million tonnes, moderating to 695,100 tonnes in 2010.

    Aluminium has been hard hit by the collapse in demand from the automotive and construction sectors, which have come under pressure during the financial crisis.

    An overhang in production capacity, seen by some up towards 9 million tonnes or nearly 20% of world capacity could risk a surplus of 1.52 million tonnes in 2010 according to analysts at HSBC, who saw prices averaging USD 1,653 per tonne in 2010, USD 1 off the median of price predictions.

    The median tin surplus of 5,000 tonnes in 2009 is seen flipping into a deficit of 1,500 tonnes in 2010. The zinc surplus is expected to moderate to just 12,000 tonnes in 2010 from 212,000 tonnes in 2009.

    (Source: Reuters)