(under review) [SMM analysis] multiple positive stacking Lunxi soared by more than 3% to recover the 15000 level

SMM4, April 9: at about 17:40 on April 9, Lunxi recently broke through the US $15000 / ton mark for the first time and recovered all lost land since March 17. As of 19:17, Lunxi reported US $15000 / ton, an increase of 3.37 percent. Domestic tin prices also continued to rise in intraday trading today, closing at 122700 yuan / ton, up nearly 1.5 per cent.

Spot, this morning the mainstream transaction price 126500-128500 yuan / ton, Shanghai and tin spot supply of small brand supply within the day is relatively tight price performance is strong, some traders and downstream enterprises in the morning a small amount of procurement, the overall Shanghai-tin spot market transaction atmosphere is generally weak. Market Yunxi 128000 yuan / ton, ordinary cloud word 127500 yuan / ton, small brand 126500-127000yuan / ton.

Tianma, the world's largest tin producer, announced that it would delay some exports in March after the outbreak, and the spread of Xinguan pneumonia has disrupted global trade, with prices falling more than 10 per cent month-on-month in March, according to ITA. The company also said it would cut production by 20 to 30 per cent that month while measuring global demand. JFX sales fell 38 per cent in March from a month earlier to 4605 tonnes. Other private tin smelters are also traded through the exchange, but Tianma produces most of the refined tin. Sales of refined tin fell in March through Jakarta Futures Exchange (JFX), Indonesia's main tin exchange, after Tianma announced a cut in production.

In addition, Alpha Ming's tin concentrate production fell by 5% in the first quarter. Although Alpha Ming Company has increased the recovery rate of the concentrator, the grade of its raw ore has decreased significantly. Within a period of time, the company achieved a recovery rate of 71% at its plant selection, meeting its target for the first quarter. The grade of the raw ore fell from nearly 5% to 3.5% because the company's mining work was carried out to an underground area with low tin enrichment. Total concentrate production in the first quarter was 2119 tons, down 116 tons from the fourth quarter of 2019.

SMM's point of view:

Shanghai tin main force 2006 contract today morning 123550 yuan / ton high opening, the beginning of the market by short pressure quickly fell to a day low of 121430 yuan / ton. Subsequently, the long warehouse Shanghai tin bottom rebounded and all the way up, and finally closed at 122700 yuan / ton, up 600 yuan / ton, up 0.49%, trading volume 27975 hands, position 35376 hands, an increase of 596 hands. Today, Shanghai tin closed with a small negative line, the lower shadow line by the 5-day moving average support, Shanghai tin support is expected to be around the integer level of 120000 yuan / ton.