SMM Daily Review - 2012/7/23 Tin Market

SHANGHAI, Jul. 24 (SMM) – In Shanghai tin market, mainstream traded prices were between RMB 146,000-148,000/mt Monday and trading remained thin with demand still poor. Although LME tin prices closed slightly higher last Friday but moved lower on Monday, spot tin prices in China remained little changed, mirroring the strong wait-and-see sentiment in the market. In the afternoon, trading was lighter with barely any transactions done. Most traders were unwilling to replenish stocks due to poor sales. Yunxi was traded between RMB 147,000-148,000/mt and Yunheng was traded at RMB 147,000/mt. Some deals for Nanshan and Jinlong were made at RMB 146,000/mt.

With respect to tin price this week, 40% market players believe tin prices should remain between RMB 146,000-148,000/mt. With downstream demand remaining weak, smelters limited supply. Since domestic economic situations may not improve in short term, and since no more stimulus policies were reported at present, smelters will continue to limit sales and the softness in demand should persist.

60% market players believe tin prices may continue to fall and move between RMB 145,000-147,000/mt. LME tin prices touched USD 19,000/mt and met resistance at the level last week. LME tin prices were under resistance at USD 19,000/mt but with support at USD 18,500/mt since market focus turned to the European debt issues again and negative news was frequently reported. Given the depressed market confidence, should LME tin prices fall below USD 18,500/mt, further declines are expected, and domestic spot tin prices may continue to drop. Most traders expect domestic tin prices may present continuous decreases this week. Besides, the lackluster demand will also drag down tin prices.