SMM Daily Review - 2012/2/17 Tin Market

[SMM afternoon comment on zinc in Shanghai: The market premium rose slightly, and the transaction was modest] On the whole, the transactions between traders are mainly dealt with the average price premium today. At the same time, affected by that, the market shipments with the market price decreased, and then some holders held up the price, so that the overall transaction was modest.

Total zinc inventories across seven Chinese markets stood at 119,600 mt as of September 10, down 2,500 mt from September 6 and 4,000 mt from September 3.

Spot premiums in Shanghai rose to 70 yuan/mt on February 18 from zero ahead of CNY due to costs during CNY holidays. However, spot premiums turned into wide discounts as of February 25 as SHFE copper prices surged, which stood at around 250 yuan/mt, a decline of nearly  460%. This signified that investors were selling aggressively to generate cash amid cash flow issues. Downstream inquiries were brisk but sellers refrained from lowering their quotes, with spot discounts stabilising between 150-140 yuan/mt.

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Buying was active in the aluminium physical market on Tuesday February 27 with narrowing spot discounts, SMM learned.

Mainstream products in Shanghai’s tin market were heard trading at 147,500-149,500 yuan/mt on Wednesday January 31, SMM learned.

As per SMM research, this week Shanghai inventories gain an obvious increase of about 10,000 tonnes.

LME tin will still hover at highs on Tuesday, with resistance at USD 21,200/mt. On Monday’s night trading, profit-taking by some longs curbed its price gains on the SHFE tin.

China imported 19,519 tonnes of tin ore in August, down 23.9 per cent MoM, and 49.2 per cent YoY, according to China Customs.

China’s tin ore output is low so far this year following resources integration and normalization of environmental protection inspections, SMM tin analyst said at the 2017 SMM Tin Industry Chain Summi