SHANGHAI, Nov. 29 (SMM) – Shanghai spot tin prices were little changed from last Friday on Monday. Mainstream Yunxi, Jinhai, Yunxiang and Nanshan branded tin was traded between RMB 172,000-174,000/mt. No further losses were seen as smelters continued to hold goods. Market demand remained depressed and downstream buyers only purchased on an as-needed basis.
A recent SMM survey shows 60% of market respondents expect this week’s tin prices to be stable. They believe lower-priced supply will drop as most domestic smelters hold their goods and quotations, which will support domestic tin prices on the condition of no further losses in LME tin.
The remaining 40% of market respondents expect a slight slip in this week’s tin prices. According to these market players, depressed market supply has not caused any supply tightness as market demand remains weak. Meanwhile, transit domestic tin will enter domestic markets during second half of this week, thereby leading to increased supply. As such, even smelters hold goods, some goods holders may lower their quotations driven by the weak demand. Further more, whether small smelters will hold goods is still uncertain. If these smelters can not withstand capital pressure, they might also contribute to an increased supply, adding to pressure on domestic tin prices.