SHANGHAI, Jun. 19 (SMM) – In Shanghai tin market, mainstream traded prices were between RMB 150,000-151,500/mt on Monday. The result of Greek election eased market concerns, driving LME tin prices to open higher, so spot tin prices were relatively stable and transactions for low-price goods improved. Nanshan, Jinlong and Jinhai were traded between RMB 150,000-150,500/mt, while Yunxi and Yunheng were traded between RMB 150,800-151,000/mt. Smelters still limited sales, insufficient supply helped support tin prices, but transactions remained weak on the whole due to poor demand.
Regarding to the tin market outlook this week, 45% market players believe tin prices should be between RMB 150,000-151,500/mt. The victory of Greece’s New Democracy party during the Greek general election moderated market concerns over a Greek exit and drove up global equity and commodity market as well as euro, buoying base metals in short term. LME tin prices opened higher on the first trading of the week but fluctuated down due to technical indicators. Market expects LME tin prices should improve. Besides, some domestic smelters have not resumed normal production, which will also give support to tin prices.
55% market players believe tin prices will fall further below the RMB 150,000/mt mark. Although the pro-bailout party won the general election, the risk for Greece to leave the Euro zone still exists. Besides, the pullback of European equities and non-US currencies on Monday and surging Spanish government bond yields as well as the rally of US dollar index all indicated market fears. In China, demand for tin ingot remained unimproved, and transactions were mainly done at lower prices. Most investors were cautious. According to SMM survey, operating rates and orders at tin solder producers both slipped in May, coupled with the onset of the traditional slack season, tin demand should remain sluggish, leaving tin prices low.