SHANGHAI, Jun. 12 (SMM) – In Shanghai tin market, mainstream traded prices were between RMB 151,500-152,500/mt on Monday, with a few goods quoted at RMB 151,000/mt. Trading remained light in general, and branded goods circulating in the market were limited. Some transactions for Kaiyuan, Nanshan and Jinhai were made at RMB 151,000/mt, while traded prices for Yunxiang, Yunheng and Yunxi were between RMB 151,500-152,500/mt. Tin prices tended to stabilize, and several of enterprises downstream started purchasing moderately.
According to SMM survey, 45% market players believe tin prices should stabilize between RMB 151,000-152,500/mt. European debt crisis remains a market focus with no related positive news can actually boost markets. However, China’s disappointing economic data caused stronger expectations on looser monetary policy. Besides, President Obama said last weekend US Congress will likely take actions to deal with the influence from European debt crisis, shoring up market confidence and lifting base metals. LME tin prices are fluctuate in an narrow band at present, despite the resistance above, prices gain strong support at USD 19,200/mt. Given the easing market concerns, tin prices will not likely drop sharply this week. In China’s domestic market, demand downstream remains weak, dragging tin prices down, but the lower selling interest at smelters leaves fewer goods supply in the market, helping support tin prices. Thus, these investors believe spot tin prices shall stabilize.
The remaining 55% market players note tin prices will continue falling but find support at RMB 150,000/mt. Although economic reports turned out mixed, global economic conditions were still sluggish. Market will be largely influenced by negative news from the euro zone, China and the US. Thus, LME tin prices may still slip this week. In China’s domestic market, weak demand downstream should prevent tin prices from increasing despite production cuts at smelters, combined with the downtrend in LME tin prices, it is possible that China’s tin prices may fall further. However, if LME tin prices stage no sharp decline, China’s tin prices shall find support at RMB 150,000/mt due to limited goods circulating in the market.