SMM Daily Review - 2012/2/3 Tin Market

SHANGHAI, Feb. 6 (SMM) – Spot tin prices dropped further in Shanghai last Friday, due to  losses in LME tin prices overnight, weak support at USD 24,000/mt and quite low domestic buying interest downstream. Yunxiang and Jinlong branded tin traded mainly between RMB 181,000-182,000/mt while Yunxi and Yunheng branded tin ingots mostly struck deals between RMB 183,000-184,000/mt. Deals for higher quotations were hardly reached and traded volumes were light. More upstream and downstream tin businesses will return to the market following the Lantern Festival, by then tin supply and demand may turn normal. However, as many downstream businesses already stocked up before the Chinese New Year, a sharp increase in tin supply may pose pressure on tin prices.