SHANGHAI, Feb. 19 (SMM) -- In the Shanghai tin spot market, trading sentiment was quiet, as some traders were still on holiday. Downstream inquires were few, and transactions were sparsely made at prices between RMB 160,000-162,000/mt.
Based on SMM survey result on market outlook, 60% market players believe that spot tin prices will fall in this coming week. During Chinese New Year holiday, LME tin prices failed to surge and only staged moderate performance, with resistance still at USD 25,200/mt. Based on previous experience, prices usually fall after stagnating for a certain period, 60% market players expect that LME tin prices will fall this week. With regard to spot tin prices, spot tin prices were RMB 30,000/mt below LME tin prices converted, showing sluggishness in spot market. As most traders will not resume operation until Chinese Lantern Festival, it is expected transactions will not be brisk, which will drag down spot tin prices.
40% market players expect that spot tin prices shall stabilize in the coming week. Although LME tin prices face risks to fall as prices fail to break through resistance and since downstream demand is weak. However, according to tin smelters, their willingness to keep price firm is strong, which will support spot tin prices. If LME tin prices fall, spot tin prices may drift lower. However, considering that spot tin prices are RMB 30,000/mt lower than LME tin prices converted, tin smelters’ willingness to keep prices firm is strong.