SHANGHAI, Oct. 24 (SMM) -- Domestic tin prices slipped further during the week from October 17th to 21st. Though the SMM tin price dropped nearly RMB 5,000/mt to RMB 178,000-182,500/mt, its losses was maintained near 2%, which was the least compared with other base metals.
With continuously slipping tin prices, the wait-and-see sentiment turned stronger among downstream enterprises, eroding support for the metal. However, the selling interest remained strong among most smelters, who are unwilling to sell large volumes of tin at such low prices. Downstream buyers only purchased on an as-needed basis and market transactions remained sparse.
Tin output dropped significantly due to capital pressure at SMEs and weaker consumption. The accelerated appreciation of RMB also added to pressures at export-oriented enterprises, which in turn led to a weaker tin demand.
Market tin supply remained tight, but only provided limited support for tin prices. At present there are still smelters holding goods. Secondary tin was not seen for months in the domestic market as secondary tin producers reduced their output due to high scrap tin prices.