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It was also during the 1970s that Africa rose to prominence, almost entirely reflecting the tremendous build-up in output from Guinea following the development of the Kimbo and Boke orebodies. 9Mt, by which time it accounted for 94% of African output. 3Mt. During the 1980s the trend towards greater concentration continued, such that by 1990 Brazil had displaced Surinam in fourth place, and the top four producers were responsible for 78% of Western output. 2 Mt. 4 Mt was only marginally higher than ten years earlier.
Discount sterling had been used to buy goods in the Sterling Area for export to the USA with payment in US dollars at the higher official exchange rate. This practice was called 'shunting' and thrived in the world of artificial, fixed rates of exchange if there were no adequate safeguards; and usually there were not. The tin market reopened on 15 November 1949 along with special regulations laid down by the Bank of England to grant approved merchants and dealers a degree of freedom from the exigencies of exchange control.
If they judge right they usually help to even out or correct imbalances in the market. If they are wrong the errors tend to accentuate volatility in the market. The fabricators and custom smelters , on the other hand, are usually working on narrow margins of profit. They usually have no desire to speculate. So any erosion of their profit margins through the adverse effect of contangos or backwardations is damaging and is to be avoided. On balance it can be said that fabricators and custom smelters favour contango conditions for they are usually accompanied by a reduction in volatility.