Supply-side environmental curbs to buoy tin price above 150,000 yuan/mt in Q4

SHANGHAI, Sep 26 (SMM) – Price of tin is likely to rise above 150,000 yuan/mt in the fourth quarter, as regular occurrence of environmental checks on the supply side and shortage of raw materials will help to ease domestic glut of tin, SMM believes. 

However, investors would cautious about invisible stocks, from tin smelters and ore traders for example, flowing into the market and weigh on the price, when price climbs up above the 150,000 yuan/mt level.  

As of September 26, SMM assessed #1 tin at 144,000-146,000 yuan/mt, up 2,000 yuan/mt from a week ago. 

On the tin mine front, domestic production will be pressured by resource conservation efforts and safety checks in the following quarter. Import of tin ore will extend its downtrend, SMM believes. News about any newly-exploited tin mine at home and abroad should be monitored.  

Environmental factors and China-US trade dispute will continue to weaken part of the downstream demand in the fourth quarter. Application of tin in emerging downstream sectors will be closely watched.