Credit Suisse predicts mixed moves in base metals prices

“This trend follows an extended phase in the second half of 2011, during which the market was retracing its previously excessive valuation,” they said in a note. But the rebound in prices for the soldering metal is unlikely to last, and the valuation could look “stretched” after the strong January rally, according to Credit Suisse. “We would argue that the upside potential for tin prices from current levels will likely be limited over the strategic six-to-twelve-month time horizon [and beyond], especially given the prevailing negative technical trend,” the analysts said. Downside risks on tin should nonetheless be limited, given the “constructive fundamental backdrop”, they added, as LME inventories have continued to fall, despite a rise in Indonesian tin exports in December, after the informal export ban broke down. “Given that global mine supply additions look limited this year, the market is likely to remain in deficit, but the supply shortfall...