SHANGHAI, May 3 (SMM) – In Shanghai tin market, low-end tin prices edged up Wednesday, and transactions were restricted by limited goods and strong wait-and-see moods. Mainstream traded prices were in the RMB 164,000-165,500/mt range, with Yunxi, Yunheng, and Yunxiang mainly traded between RMB 164,500-165,500/mt. Several of transactions for Nanshan were concluded at RMB 164,000/mt, while a few deals for Feiyan were made at RMB 163,500/mt. Imported tin from Indonesia was quoted at RMB 163,000/mt. Smelters were unwilling to move goods due to staying high costs, limiting goods circulation and helping support tin prices. Coupled with the rising LME tin prices during the May Day holiday, low-end prices in domestic tin market were driven up. However, high-end tin prices did not change significantly due to the sluggish consumption downstream. The price movements both at home and abroad added to cautious sentiment in the market, both dealers and downstream enterprises were not active in purchasing, leaving trading muted.
With respect to the price trends this week, 60% market players believe tin prices should remain stable. For one, LME tin prices rebounded last week but met resistance to rise further, so LME tin prices are expected to fluctuate this week. For another, domestic smelters, discouraged by current tin prices, limited their sales. Thus, fewer goods supply will give certain support to spot prices, while the weak demand is bound to weigh on tin prices. Therefore, tin prices should remain flat this week.
25% market players hold that tin prices will still likely decline. The reduced orders at SMEs downstream and the dampened demand caused by China’s economic slowdown, combined with the soft consumption in domestic tin prices, may result in decrease of spot tin prices if goods supply grows.
The remaining 15% believe tin prices may continue to rise. The stabilized economic situation and rally of LME tin prices raised market confidence. Meanwhile, the reported export restriction of Indonesia and low selling interest at smelters left sparse low-priced goods in the market. Thus, tin prices may move up slightly this week.