SHANGHAI, Oct. 30 (SMM) – As LME tin prices dropped below USD 20,000/mt last Friday, spot tin prices in Shanghai continued to fall on Monday. In the morning, some goods from Yunxiang, Nanshan, and Weitai were quoted as low as RMB 146,000/mt. However, traded prices increased in the afternoon with mainstream prices between RMB 146,000-147,500/mt. Yunxi and Yunheng were traded at RMB 147,000-147,500/mt, and prices for Yunxiang and Nanshan were between RMB 146,000-146,500/mt. Most cargo holders reported weak transactions.
With respect to tin prices this week, 60% market players believe spot tin prices should continue to fall. LME tin prices dropped below the 60-day moving average, hurting market confidence, and most investors are not optimistic towards LME tin prices. A majority of market players surveyed note that spot tin prices may still drop even if LME tin prices could remain stable at the current level. Some brands including Yunxiang were quoted low recently, but trading was still weak, so cargo holders may continue to cut prices, dragging down overall prices. As such, these market players expect tin prices will be RMB 145,000/mt or even dip further if LME tin prices show sharp declines.
40% investors believe spot prices should stabilize this week, as LME tin prices will unlikely present significant declines with support at USD 19,500/mt. Besides, selling interest at domestic smelters was further dented by the falling prices, curtailing supplies, especially low-priced goods, in the market, also giving some support to domestic tin prices.