SMM Daily Review - 2012/4/16 Tin Market

SHANGHAI, Apr. 17 (SMM) – Spot tin prices continued to fall on Monday due to the weak LME tin prices, with mainstream traded prices between RMB 165,000-168,000/mt. Nanshan, Feidie, and Yunshan were mainly traded between RMB 165,000-165,800/mt, while most deals for Yunxi and Yunxiang were concluded between RMB 166,000-166,500/mt, the manufacturer’s quotation for Yunxi was at RMB 168,000/mt. Smelters were unwilling to move goods at low prices, while traders limited replenishment, leaving insufficient goods available to the market. Investors were not optimistic toward market outlook, and wait-and-see sentiment continued to prevail in the market.

Regarding to the price trends this week, 60% market players believe tin prices will keep falling. Output at downstream enterprises, influenced by the current economic slowdown in China, may drop by varying degrees, leading to weak demand. Coupled with the weak trends in LME tin prices which will likely fall below USD 22,000/mt, these investors believe tin prices should still be under downward pressure.

The remaining 40% investors consider spot tin prices should be stable. Despite the possible decline in LME tin prices, the cost pressures at domestic smelters may discourage their low selling interest, leaving insufficient goods supply in the market. This will give certain support to tin prices, and help prices maintain stable this week.