SHANGHAI, Sept. 27 (SMM) – Due to global economic panic, Shanghai tin prices stayed near lower-end prices of previous trading day. Mainstream Yunheng and Nanshan branded tin traded between RMB 177,000-180,000/mt. Small volumes of Yunxi branded tin traded between RMB 179,500-180,000/mt. Intensive selling was seen during the day as most traders were pessimistic towards near-term tin prices. As most smelters were unwilling to move goods due to low prices, fewer tin brands were seen in the market. Previously active Jiangxi brands including Nanshan and Kaiyuan were not seen either. Market transactions remained sparse, however, due to weak downstream consumption and stronger wait-and-see sentiment.
During the last week before the National Day holiday, pessimism that Greece will default is expected to cause stronger risk aversion sentiment and therefore more market players will stay out of the market, further exerting downside pressure on LME tin prices. Most domestic traders also worry that LME tin prices may experience another drop during the one-week National Day holiday, as reflected by the increased selling on September 26th. Though most smelters were holding goods, continuous tin import will generally meet the weak domestic demand. Therefore, most market players believe another drop in tin price is inevitable. However, there are also many market players who expect domestic tin prices to stay above the RMB 170,000/mt mark this last week before the National Day holiday.