SHANGHAI, Feb. 13 (SMM) – Spot tin price dropped sharply and tin was the only base metal that weakened last week, with the SMMI.Sn slipping 1.5%. Traded prices concentrated between RMB 177,500-181,000/mt last Thursday and deals above RMB 181,000/mt can hardly be reached, according to goods holders.
Jiangxi tin supplies entered the market last week, accelerating losses in tin prices already pressured by weak demand. Most smelters have resumed production but some are still maintaining low output in support of prices and also due to weak demand and high raw material prices. While quotations were held firm by most smelters, some smelting businesses were forced to lower prices due to sales difficulties.
Tin trading had been light last week excluding Friday as continually slipping prices caused a stronger wait-and-see attitude among downstream businesses. In addition, as the Lantern Festival has just passed, downstream demand still have not fully picked up, actual demand for the metal therefore is still to become clear in the following one to two weeks.
Tin prices climbed again last Friday as goods holders lifted quotations and downstream businesses increased purchases in the face of strong performance of LME tin and physical demand.