SHANGHAI, Jun. 5 (SMM) – On Monday, mainstream traded prices in Shanghai tin market were between RMB 152,500-154,500/mt, transactions remained modest. Jinlong, Yunxiang, Yunshan, and Yunheng were mainly traded between RMB 152,500-153,000/mt, while most transactions for Yunxi were concluded between RMB 153,000-154,500/mt. LME tin prices ended at USD 19,350/mt last Friday, combined with the remaining weak demand in domestic market, market confidence were depressed severely, causing tin prices continue to drop. At midday, some goods quoted at RMB 152,000/mt attracted dealers to replenish stocks, promoting trading slightly. However, market was quiet again with fewer low price goods circulating in the market.
With regard to the tin price this week, 70% market players believe tin prices will continue to fall and gain support at RMB 150,000/mt. The exacerbating European debt issue, the lower-than-expected US employment data and disappointing Chinese PMI added to market fears. The negative economic conditions weighed on LME tin prices further. Thus, tin prices in domestic spot market are expected to continue the downtrend but find support at the RMB 150,000/mt mark. However, a few investors believe chances are that tin prices may dropped below the mark, due mainly to the gloomy demand and weak LME tin prices.
30% market players believe tin prices should remain stable this week. Despite the continuous decline in LME tin prices, some domestic smelters cut production due to limited sales and high costs for raw materials, leaving fewer goods circulating in the market, and helping support prices in spot market.