SHANGHAI, Nov. 15 (SMM) – Shanghai spot tin prices were little changed from last Friday on November 14th. Mainstream traded prices of Yunxi, Yunheng, Tianxi, Yunxiang, Kaiyuan, Jinlong and Nancang branded tin were between RMB 178,000-180,500/mt. The traded volume continued to rise during the day. As the European debt crisis eased, LME tin prices started to rebound. Domestic tin prices also showed signs of rebound, with the downstream buying interest gradually rising. However, after talking with downstream enterprises, SMM found out that their orders did not see much improvement, therefore the weak demand will limit gains, if domestic tin do rebound, of domestic tin prices.
A latest SMM survey shows 50% of market respondents expect domestic tin prices to be stable this week. According to these respondents, LME tin has already started to rebound with alleviated worries towards the European debt crisis and fine-tuning of Chinese monetary policies. However, it stayed near USD 22,000/mt due to strong resistance above. As for domestic tin, weak demand will limit its upward space, but tight supply due to high production costs will provide some support.
35% of market respondents expect a slight increase in domestic tin prices this week, believing that the strengthening LME tin will help lift up domestic tin prices a little bit.
The remaining 15% of market respondents expect losses in domestic tin prices to continue this week. According to these respondents, the macro environment did not see a material improvement as most optimistic expectations are speculative. Meanwhile, LME tin also faces downside risks following its failed attempts to break through. Domestic tin prices, which are facing pressure due to weak demand, may slip as a result.