Malaysia's spot tin price closed unchanged at 20.19 ringgit ($5.31) a kg on Thursday after a brief trading session as bids and offers matched at the opening, traders said. "Volume has reduced after the activities in the last three days. Moreover, the LME (London Metal Exchange) was also unchanged last night," said a trader. Turnover was 44 tonnes, down from 70 on Wednesday, and was absorbed by European and local buyers. Traders said the performance of the LME would continue to dictate the price direction here, adding that they expected the local price to trade between 20 and 20.50 ringgit a kg in the near term. The premium held by the local price over the London market remained at $70 a tonne.

BHP iron ore output up

The Broken Hill Pty Co Ltd said on Friday production of iron ore rose one percent to 5.0 million tonnes in September, while output for the four months to end-September rose four percent to 19.3 million tonnes. Steady production of iron ore from WesternAustralia for September reflected continued strong customer demand for Yandi product, BHP said. Production of iron ore from Brazil was higher for both the month and the year to date after the expansion of the pellet plant late last year. Increased production of manganese ore for the month was due to higher throughput and less maintenance days, prior to the planned maintenance shutdown in October.

Tocom gold lower

Yen-based gold futures closed lower on Friday due to the yen's strength against the dollar after a surprising US interest rate cut overnight, traders said. Other precious metal futures mostly rebounded, shrugging off the negative impact from dollar/yen rates, with sentiment lifted by the US credit easing which traders said was positive for revitalising the world economy and demand for the metals. Gold futures ranged from four to 16 yen per gram lower. Benchmark August ended off five yen at 1,111 yen, after falling to the day's low of 1,105 yen. "The market was pushed down by the currencymarket. But losses were limited as short-covering gathered force after the the dollar regained some ground against the yen," one brokerage analyst said. Spot gold was quoted stronger at $299.75/300.25 an ounce at0725 GMT, against Thursday's New York close of $297.10/60.

Indian bullion recovers

Indian gold and silver bounced back after recent losses on modest recovery in world prices, dealers said. Demand has now picked up and traders expect it to rise as Indians prepare to celebrate the Diwali Festival next week," Maganlal Damani, president of Bombay Bullion Exchange, said. Standard gold, 24 carat, opened Rs 30 higher at Rs 4,360 per 10 grams. Gold Fell Rs 10 on Thursday. Gold biscuits (116.64 grams each) gained Rs 200 to Rs 51,100 per piece. In Europe, gold was quoted at $299.40/60 per ounce compared to $297.10/60 at Thursday's New York close. Silver (.999) price went up by Rs 120 to Rs 7,450 per kg. Silver was down by Rs 55 on Thursday. "Lower supplies also put some pressure on the local silverprices," one trader said. Traders reported lower arrivals of 400/500 kg of imported silver in early trade on the Mumbai market against 1,400/1,500 kg received on Thursday. In the European market, silver was quoted at $4.96/98 per ounce against the previous New York close of $4.92/97.

India to be world's top milk producer

India will become the biggest milk producing country by the end of the current fiscal, surpassing the United States' production level, an international journal says. Being at the brink for the last three years to attain the number one position by producing about 74 million tonnes of milk, the country is all set to achieve this distinction, reports the International Dairy Industry Newsletter, published from the United Kingdom. The production forecasts reveal that milk production in India would grow by four per cent in 1998-99 and reach 74 million tonnes, three million tonnes higher than the US milk production, it says. India's milk production has more than trebled in the past 25years mainly due to the initiatives of the National Dairy Development Board (NDDB) and the Operation Flood project, the world's largest dairy development programme, says the payer. There are about 70 million milk farmers in the country. Annual national milk consumption is about 65 kg per person, the newsletter points out.

Export curbs lifted

The government on Friday removed export curbs on milk powder and rarified butter (ghee) while allowing exports of herbal formulations as a recognition of its export potential. The decision to remove curbs on milk powder and rarified butter exports was aimed at promoting exports from the processed food sector, an official press release said here. Currently quantitative restrictions on exports of milk powder and rarified butter meant shipments could only be done by obtaining certification from the agricultural and processed food export development agency.

The notification which lifted these curbs was issued on October 13, while that for allowing shipments ofherbal formulation was issued on October 14, the release said. However, export of plant and plant portions from which these herbal formulations were prepared remain banned, it said. A cess would be collected on exports of these formulations for development of herbal plantations and a scheme would be worked out soon to promote herbal plant cultivation, the release said.

Mill gate sugar prices recover

Sugar mill gate prices looked up on the local sugar market here on Friday on increased festival demand amidst restricted arrivals. Sugar mill delivery mill gate, Khatoli (SM) and Titabi rose by Rs 5 each to close at Rs 1,410 and Rs 1,445 per quintal respectively. Sugar mill delivery Modi Nagar and Samali also attracted some buying and stepped up from Rs 1,430 and Rs 1,440 to close at Rs 1,445 and Rs 1,447 per quintal respectively. On the other hand, imported sugar ex-Amritsar variety quoted lower at Rs 1,500 against the previous level of Rs 1,510 a quintal.

Chinese copper gets breather

TheChinese Copper market responded to the overnight rates cut by the US Federal Reserve with a cautious rally as players kept their eyes on the London market, analyst and traders said. Shanghai copper futures rose on anticipation of a positive response on the London Metal Exchange, but many traders said the rally was likely to run out of steam soon.