SHANGHAI, Jan. 8 (SMM) – In Shanghai tin market, spot tin prices remained strong between RMB 156,000-158,000/mt on Monday with transactions also improved. Traded prices for Yunxi and Yunheng were between RMB 157,000-158,000/mt, and those for Yunxiang and Nanshan were RMB 156,000-165,500/mt. A few goods were traded at RMB 155,500/mt. Most traders were bullish on market outlook, and prices for tin concentrate and scrap tin also climbed. Yunnan Tin Group’s quotations were raised noticeably after the company started maintenance, helping drive up tin prices. The limited supply of non-leading brands in the market also contributed to the price increase.
According to SMM survey, 60% industry insiders believe tin prices will continue to rise this week. The maintenance of Yunnan Tin Group curtailed supply from the company and drove up its quotations, which will help boost prices for leading brands. In addition, tin concentrate prices increased notably after the New Year holiday with tin concentrate (Sn 40%) traded at RMB 117,500-120,000/mt (tin content), and tin concentrate (Sn 70%) traded at RMB 126,000-129,000/mt (tin content). Quotations from traders are expected to rise further. This will give a rise to production cost for tin smelters, and push up tin prices. Above all, non-leading brands are rarely seen in the market after the holiday, and traders and smelters are not willing to move goods at low prices. As such, tin prices may still increase with downstream buyers replenishing stocks ahead of the Chinese New Year.
The remaining 40% market players believe tin prices should hold steady this week instead of climbing further, noting that base metals will be weighed on by the strong US dollar index, and LME tin prices, once dropping below the 5-day moving average, will likely return to USD 23,200-23,500/mt. Meanwhile, the rapid growth in domestic spot tin prices was not acceptable for downstream buyers, so the stalemate between buyers and sellers should leave spot tin prices little changed.