Tin Prices Faced Downward Pressure amid Pessimistic Macro Sentiment and Accumulated Inventor

SHANGHAI, Sep 14 (SMM) - The U.S. August CPI released last night was higher than expected, raising the market expectations for Fed’s aggressive interest rates hikes. After the data was released, the US dollar index rose sharply, while prices of non-ferrous metals all fell. Among them, SHFE tin led the decline, which once fell by 5.62% in intraday trading. As of noon, the decline was narrowed to 4.63%. As of CST 15:14, LME nickel fell 1.62%.

In the spot market, the average spot price of SMM1# tin today was 179,000 yuan/mt, down 4.79% from yesterday.

During the morning trading, the offers of smelters remained divided. Some smelters were rather firm to their prices, while some did not offer quotations due to sharp price fluctuations. According to the feedback from traders, the number of quotations in the morning trading market after the holiday was still relatively small. The premiums were slightly higher, and the spot market saw increased trades amid spot price decline. Downstream companies generally purchased on rigid demand, and some companies have already placed pending orders when prices dipped last night.

Fundamentally, domestic tin inventory under SHFE warrants rose significantly by 611 mt to 1,832 mt. LME tin inventory continued to accumulate, which gained 75 mt yesterday to 4,785 mt. The overseas premiums remained stable.

On the supply side, the tightness of raw materials in several smelters has caused production cuts, but the overall impact will be little. On the demand side, purchase on rigid demand sustained in the wake of the holiday, and the production remained stable. Spot demand fell amid rising tin prices, and the higher inventory will exert pressure on the tin prices. Therefore, it is expected that the tin prices will go down in the near future.