SHANGHAI, Aug. 16 (SMM) – Spot tin prices in Shanghai closed much higher on August 15th as a result of limited supply and continuously climbing LME tin prices. Most tin supplies in the spot market are futures. Mainstream trading brands during the day were Yunxi, Nanshan and Kaiyuan. Main futures tin brand is Yunheng. Mainstream trading prices were between RMB 196,000-198,000/mt. A trading price of RMB 199,000/mt was also reported for small volumes of Yunxi branded low-lead tin. Some market players said transaction at RMB 198,000/mt was difficult and further going up is not likely to happen. Their main reasons are quickly climbing prices and low downstream demand. Market transactions during the day were sluggish due to limited supply and high prices.
A recent SMM survey shows 52% of market players expect domestic tin prices to climb further, though with a limited upward space. LME tin prices are also expected to further climb supported by positive fundamentals. Despite limited supply to provide solid support, domestic tin prices are not likely to reach RMB 200,000/mt due to weak consumption. 41% of market players are neutral, expecting tin prices to fluctuate below RMB 198,000/mt. Their main reason is low-demand. Remaining 7% of market players expect tin prices to fall. Given neutral macro factors, rebound strength of LME tin prices is expected to weaken. With weak domestic consumption, domestic tin prices are therefore expected to fall.