SMM Daily Review - 2011/11/21 Tin Market

SHANGHAI, Nov. 22 (SMM) – Shanghai spot tin prices continued to slip on November 21st with plunging LME tin prices. Mainstream Nanshan, Yunxiang, Jinhai and Yunheng branded tin was traded between RMB 174,500-177,000/mt. Few other tin brands were seen. The traded volume remained quite low despite of slipping prices. Though most smelters were unwilling to move goods at low prices, no tightness was seen for market supply. Imported tin and some lower-priced tin brands generally met the market demand.

An SMM survey on this week’s tin prices shows that most market players expect spot tin prices to slip this week, citing the weak demand as the main cause. The downstream tin demand was weaker than previous years due to weak terminal demand and tight capital supply. The majority of respondents also expect the weak demand to continue till the year end. Though smelters have been holding goods, increased supply at lower prices suggests that the market confidence was less strong than the past. Supply at lower prices by a few smelters has led to continuously slipping prices. Falling prices and a dim outlook for LME tin due to European and U.S. debt woes also add to the bearish market sentiment. Therefore, domestic tin prices are expected to slip further this week.