SHANGHAI, Jan. 17 (SMM) – Spot tin prices were little changed at RMB 170,000-171,500/mt on Monday in Shanghai. The traded volume was quite light as downstream as well as traders gradually closed operation ahead of Chinese New Year. Stability in LME tin prices also helped the metal stabilize.
In an SMM survey on this week’s tin prices, 80% of market respondents expect stability, mainly due to stable LME tin prices and light domestic trading ahead of Chinese New Year. Though the downstream demand is weak, tight supply will balance such pressure.
Remaining 20% of market respondents said spot tin prices face downside risks this week. Their conclusion was drawn mainly based on following reasons: 1. negative news on euro zone economies coming out now and then haven been pressuring global markets; 2. some goods holders may lower their quotations in the face of weak demand. A Guangxi-based smelter already moved goods below RMB 170,000/mt last week and this scene may show in Shanghai if such supplies enter the Shanghai Market.