SMM Tin Price Forecast (Mar. 12-16)

SHANGHAI, Mar. 12 (SMM) – Spot tin prices dropped continually to RMB 169,000-171,000/mt on Thursday last week in Shanghai as LME tin prices slipped. The metal recovered with mainstream traded prices rebounding to RMB 170,000-172,000/mt on Friday, also influenced by higher LME tin prices. Though supply decreased with falling prices, supply sufficiency was seen in the face of weak demand. In the meanwhile, production orders at downstream businesses failed to recover as expected in March. That combined with falling prices has led to a strong wait-and-see attitude and light trading. Spot tin prices may climb this week as LME tin prices are expected to recover further. The metal can only hit RMB 174,000/mt, however, given the weak demand. If LME tin fails to present strong performance, domestic tin prices are expected to stabilize at present levels as fundamentals are little changed.