SHANGHAI, Sept. 5 (SMM) -- Supported by rising LME tin prices, the SMM average tin price gained RMB 2,100/mt from a week earlier to RMB 196,350/mt as of September 2nd Friday. LME tin prices broke through the USD 24,000/mt mark during the first two days and closed at USD 24,255/mt on August 31st Wednesday. Though performance of the metal was relatively weaker compared with surrounding LME metals, it still boosted domestic goods holder confidence to keep their quotes firm.
Tin smelters reduced their supplies this week due to high raw material prices, leading to fewer lower-priced goods in the market while lifting up lower end of tin prices. Upward space of the higher-end price, however, was limited since transactions near RMB 197,000/mt were rarely reached.
Market transactions during the first three days were slightly sluggish, and turned active on Thursday when downstream purchases increased due to continuously rising spot prices, but turned sluggish again on Friday with falling LME tin prices. As no increase for demand or transaction was seen entering September, the conventional peak season is expected to come later than previous years.