SHANGHAI, Mar. 5 (SMM) – In Shanghai tin market, mainstream traded prices held steady at RMB 155,500-156,500/mt on Monday, with most goods traded in the market from Yunnan. LME tin prices remained low, hurting market sentiment and triggering wait-and-see mood. Trading was thin with demand depressed.
SMM survey shows that 45% market players expect spot tin prices to hold steady this week. Central banks of major economies will unveil their interest rate for March this week and the US February nonfarm payrolls will also be released. Investors’ confidence will be optimistic and expectation for the termination of the easing policy will be strengthened if nonfarm payroll data turn out upbeat, and vice versa. Market concerns have been eased by the bright economic data released recently, and market was not greatly hit by the automatic spending cuts in the US. Thus, these market players believe LME tin will unlikely show significant change and spot tin prices will also remain stable.
35% market players believe spot tin prices will fall. LME tin prices may possibly fall below USD 23,000/mt weighed down by the rising US dollar, depressing confidence of domestic cargo holders. Coupled with the anemic demand and soft consumption, tin prices will come under downward pressures, but declines will be limited due to high cost.
20% investors expect tin prices to move up. As LME tin prices regained some losses after the decline last Friday, some investors believe LME tin prices will rise to USD 23,800/mt, which may lift investor sentiment in domestic market. Thus, spot tin prices are expected to edge up.