SHANGHAI, Oct. 25 (SMM) – The sentiment in Shanghai spot tin market slightly improved on October 24th supported by optimism towards the macro environment. Traded prices of the metal, however, were little changed. Mainstream tin brands during the day were Yunxi, Yunheng, Yunshan, Yunxiang and Nanshan, which mainly traded between RMB 178,000-182,000/mt. Market transactions increased compared with the previous week as climbing LME tin prices stoked up the downstream buying interest. The market supply decreased in the afternoon after some goods holders pulled back their goods.
A latest SMM survey shows that 60% of market respondents expect a slight increase in domestic tin prices this week as investors are optimistic towards the EU Summit solution scheduled to come out this Wednesday. The positive PMI data of China also helped to lift up the market sentiment. Therefore, these respondents expect a rally to start for domestic tin prices supported relatively tight supply and expectation for a short-term gaining trend of LME tin prices. Domestic raw material prices have been staying at high levels recently, and with climbing coal and electricity prices, the production cost of smelters was also climbing, thereby leading to a tight supply as smelters held goods. This situation will help domestic tin prices gain in the short term.
The remaining 40% of market respondents expect little change in domestic tin prices this week, saying that the metal will mainly fluctuate near the RMB 180,000/mt mark. They believe LME tin will only be strong for a short while as the overall market situation has not seen any material breakthrough. Meanwhile, market transactions will also remain sluggish due the weak domestic demand. Therefore, spot tin prices are not likely to move up rapidly, but will be stable at present levels.