SHANGHAI, Jul. 17 (SMM) – In Shanghai tin market, mainstream traded prices for spot tin were between RMB 147,000-148,500/mt Monday, and trading remained quiet. Smelters were not actively moving goods with strong wait-and-see sentiment in the market, and inquiries were rarely seen in the afternoon. Yunxi and Yunheng remained the major brands traded in the market, brands from Jiangxi were also heard. Most deals for Yunxi were made at RMB 148,000/mt, and Yunheng was quoted between RMB 147,000-147,500/mt. Nanshan, Jinlong and Nancang were traded between RMB 146,300-146,500/mt, and smelters held quotations relatively firm.
According to SMM’s survey, 60% market players believe tin prices should stop falling and move around the current level this week. Transactions were still quiet at present with most deals done for brands from Yunnan province, suggesting that smelters are still reluctant to sell, which will give certain support to tin prices. A survey showed that output and orders at downstream enterprises remained unimproved, so purchases for tin ingots were limited. Besides, LME tin prices hovered around the 5-day moving average with strong resistance above, and recent release of economic data may not offer great support to LME tin prices. Thus, tin prices will likely fluctuate in a narrow band.
40% market players note tin prices will fall further this week due mainly to the weak domestic demand. Downstream buyers are not willing to purchase even if smelters limited supply, market may not see improvements, with oversupply still existing. Hence, tin prices will continue to inch down.