SHANGHAI, Dec. 11 (SMM) – In Shanghai tin market, spot tin prices fell further to RMB 147,500-149,000/mt on Monday with a lack of support from Friday’s LME tin prices, with mainstream traded prices at RMB 148,000/mt. Yunxi, Yunheng, and Yunxiang were mainly traded at RMB 148,000-149,000/mt. With supply of low-priced resources increasing, many leading brands were sold at RMB 148,000/mt. Traded prices for Jinlong and Nanshan were around RMB 147,500/mt. Yunxi held quotations firm at RMB 151,000/mt. Trading was quiet with downstream demand weak.
SMM’s survey show that 40% market players believe spot tin prices this week may edge up with bullish outlook for LME tin prices. Given the price movements on Monday, LME tin is likely to cross above USD 22,000/mt, and then even test a high of USD 22,700/mt. As such, spot tin prices are bound to be influenced by the strong LME tin prices despite the limited demand. That, combined with market anticipation for higher prices, will help drive up spot tin prices.
40% investors expect spot tin prices to remain stable. Market will see several risk events this week, including the Fed’s meeting on interest rate decision. Although market expectations will cool to certain extent given the above-expected nonfarm payroll data released Friday, the rebound in gold reignited market expectations on further positive policy by the Fed. In Europe, final decision on Greek debt issue is expected this week. The bond buyback remained a major concern, but there is a low possibility that unexpected result may occur. Under these circumstances, LME tin price trends remain uncertain. However, these investors believe LME tin will unlikely break through the resistance at USD 22,000/mt, and spot tin prices in China, given the support of limited low-priced goods, are not expected to change significantly.
The remaining 20% market players expect tin prices to fall as the sluggishness in domestic tin market and higher selling willingness resulting from urgent needs for cash by the end of the year should drag prices down if LME tin prices fail to break through the resistance. However, they believe decline will be limited.