Tin prices may hit $5,000 in H2

State tin miner PT Timah Tbk said on Thursday tin prices could hit $5,000 per tonne in the second half of this year.

The world's largest integrated tin miner also said it would keep tin output steady at 40,000 tonnes, although some analysts have forecast that demand could exceed supply this year.

"Our production is more or less similar to last year," Tobrani Alwi told reporters on the sidelines of a conference.

"We are producing at least 20,000 tonnes in the first semester of this year, and we are going to produce another 20,000 tonnes in the second semester."

Analysts CRU International Ltd said this week the global tin market, tightly balanced last year, was expected to move into deficit this year and stay that way in 2004.

World consumption for tin, used mainly in packaging and lead-free soldering, is likely to exceed production by some 12,000 tonnes in 2003, it said.

Thobrani predicted further upside for tin prices, saying the metal could reach $5,000 per tonne later this year.

"Personally, I am optimistic. London Metal Exchange stocks are going down, consumption is also increasing," he said. (*)