Tin prices jumped on last Monday to their highest in nearly two months amid talks of a potential ban on mining in major ore producer Myanmar.
The most-traded May tin contract on the Shanghai Futures Exchange, by 06:04 GMT, jumped as much as 11.9% to 218 580 yuan ($31 815.20) a tonne, its highest since February 23 and the biggest daily gain since March last year.
Benchmark three-month tin on the London Metal Exchange climbed as high as 9.4% to $27 200 a tonne, a level unseen since February 22.
News floated in the market of a possible mining ban in Myanmar's Wa state, the largest tin-producing area in the country, to preserve the remaining ore supply.
Reuters has not been able to independently verify the information.
"The Wa state is the largest tin mine producing area in Myanmar, and most of its output is sent to China. The ban on mining will undoubtedly make the already tight supply of tin mines even tighter," broker Xinhu Futures was quoted by state-run Shanghai Securities News as saying.
However, a trader said it is unclear whether the ban will be implemented and the Xinhu report said "this is not the first time such notifications have been made."
LME copper CMCU3 rose 0.5% to $9 065 a tonne, nickel CMNI3 advanced 2.1% to $24 645 a tonne, aluminium CMAL3 was up 0.1% to $2 388 a tonne, zinc CMZN3 increased 0.2% to $2 862.50 a tonne, while lead CMPB3 fell 0.9% to $2 151 a tonne.
SHFE copper SCFcv1 rose 0.1% to 70 150 yuan a tonne, aluminium SAFcv1 advanced 0.5% to 18 795 yuan a tonne, zinc SZNcv1 was up 0.6% at 22 465 yuan a tonne, lead SPBcv1 increased 0.7% to 15 390 yuan a tonne and nickel SNIcv1 jumped 3.2% to 190 460 yuan a tonne.
ANZ analysts said in a report that copper prices have been supported by hopes of more stimulus measures in China following weak inflation data and low inventories in LME warehouses, which were at the lowest since 2005.
