SHANGHAI, May 22 (SMM) – In Shanghai tin market, mainstream traded prices were between RMB 153,000-155,000/mt on Monday with market confidence boosted by the stabilized LME tin prices. Nanshan, Jinlong, Yunxiang, and Yunshan were mainly traded between RMB 153,000-154,000/mt, while most transactions for Yunxi were concluded between RMB 154,000-155,000/mt. Smelters were not willing to sell goods due to the staying high costs and unsuitable tin prices. Meanwhile, buying interest downstream improved, promoting transactions, and low-price goods were rarely seen. However, some market players still held a wait-and-see attitude as market was unstable.
With regard to price trends, 40% market players believe tin prices should rally this week. On one hand, the LME tin prices closed higher last Friday, raising market confidence. On the other, since smelters are reluctant to move goods due to high costs, goods circulating in the market were limited, giving certain support to tin prices. Thus, domestic tin prices should rise mildly if LME tin prices continue the upward trend.
40% investors hold a view that the tin prices tend to stabilize this week. Despite a sign of stabilizing in LME tin prices, the macroeconomic condition is still full of uncertainties given the unresolved European debt crisis, and wait-and-see still prevails in domestic market due to the remaining sluggish demand which leads to modest transactions. In this context, domestic tin prices are not likely to gain strong support and should remain stable if the increases in LME tin prices are limited.
The remaining 20% market players believe tin prices will fall this week, since orders at enterprises downstream failed to stage any remarkable improvements, and LME tin prices have not fully stabilized yet.
