SHANGHAI, May 15 (SMM) – On Monday, trading in Shanghai tin market remained modest. Nanshan, Jinlong and Yunxiang were mainly traded at RMB 157,000/mt, with a few transactions finally concluded at RMB 156,500/mt. Mainstream traded prices for Yunheng and Yunxi were between RMB 157,000-160,000/mt. Dealers were still very cautious and limited replenishments as the weak LME tin prices continued to influence the market. Buying interest at downstream enterprises remained low. Investors were not optimistic to market outlook and only watched on the sidelines.
As for the price trends in tin market this week, 70% of market players note prices may remain flat. LME tin prices ended at USD 20,376/mt last Friday, with losses narrowed to USD 4/mt from the previous trading day, helping support spot market somewhat. However, buying willingness at enterprises downstream did not improve, and wait-and-see sentiment prevailed in the market. In this circumstance, spot tin prices may test RMB 155,000/mt if LME tin prices continue to fall.
The remaining 30% investors believe tin prices will drop below RMB 155,000/mt this week, saying that production at enterprises downstream is negatively affected by China’s economic slowdown, causing these enterprises to limit purchases for raw materials. As such, demand downstream is not likely increase, and in turn, dragging tin prices to fall below RMB 155,000/mt.