SHANGHAI, Aug. 19 (SMM) – Continuous fluctuation of LME tin prices near USD 24,000/mt during the week also dampened goods holder confidence. Spot tin prices in Shanghai saw another slight dip on August 18th, with mainstream trading brands Yunxi, Yunheng as well as Jiangxi brands. Mainstream trading prices were RMB 195,500-198,000/mt.
Tin supplies have been kept tight during recent period as smelters are facing raw material and power supply pressures. High raw material prices have also led to certain extent of unwillingness to sell among smelters, thereby reducing market supplies. For downstream enterprises, weld tin producers generally reported lower operating rates and order volumes, indicating the conventional peak season may come later. As a result, both supply and demand have turned sluggish. Though domestic tin prices are not likely to fall supported by limited supplies and goods holder expectation of higher prices, market confidence is still stricken by seasonal low-demand and fluctuating LME tin prices. Therefore SMM expect tin prices to keep a fluctuating trend in the recent period.