SMM Tin Price Forecast (Nov. 28-Dec. 2)

SHANGHAI, Nov. 28 (SMM) – China spot tin prices continued to slip last week amid plunging LME tin prices. SMM tin prices were between RMB 172,500-175,500/mt last Friday, with their average dropping RMB 4,150/mt from the previous Friday. Causes of this plunge include continued weakness in LME tin, a dim market outlook, weak demand and selling-off at lower prices. Though most smelters were holding goods, transit domestic tin and supply at lower prices by traders were still able to achieve a balance of supply and demand, whereas at the expense of what those smelters have been expecting. At present smelters in Yunnan, Guangxi and Hunan etc. still quote above RMB 176,000/mt in the hope of holding up domestic tin prices. Lower-priced supply still exists and downstream demand remains weak, however, adding to doubts whether domestic tin prices can hold.