SHANGHAI, Oct 11(SMM) – SHFE 2311 tin contract maintained sideways after opening low on yesterday’s night session and then rebounded rapidly before finally closing at 211,380 yuan/mt, down 0.53%. Spot premiums and discounts were slightly higher than yesterday. Small brand tin ingots were offered at premiums of 0-400 yuan/mt, premiums of 400-700 yuan/mt for delivery brands, premiums of 1,000-1,200 yuan/mt for Yunxi brands, and discounts of 300-500 yuan/mt for imported tin brands. Yesterday, tin prices dropped again, and downstream purchase sentiment was fueled. Most trading companies reported that shipments continued to run higher yesterday, with a shipping volume of 20-70 mt yesterday morning. However, some companies also reported that the remaining tin ingot inventory was currently low and supply was limited except for those from long-term orders.
Recently, LME inventory accumulation caused imported tin prices to weaken. After the holiday, the SHFE-LME price ratio rose again, leading to the expansion of the theoretical profit level of tin ingot imports, enabling LME tin ingot to flow into domestic market directly. Affected by factors such as the overall weakening of nonferrous metals, tin prices fell after the holiday. In the past two days, most smelting companies in the domestic market held a strong willingness to raise prices, while downstream generally also had a high purchasing sentiment. After a large number of shipments in the past two days, some companies reported that their remaining inventory was small. The tighter supply in the spot market may support tin prices in the short term. As the subsequent imported tin ingots gradually arrived at domestic ports, the pace of overseas inventory accumulation may also gradually slow down.
