SHANGHAI, Mar. 19 (SMM) – Mainstream traded prices in Shanghai tin market were between RMB 153,000-155,000/mt on Monday, and a few goods were traded at RMB 152,500/mt. Although LME tin prices slumped, spot tin prices in China remained relatively stable as spot prices started departing from the track of LME tin last week. However, trading remained quiet.
SMM survey shows that 70% market players expect tin prices to fall further this week. The condition for Cyprus to obtain bailout aid rekindled concerns over the European debt crisis, driving the euro and base metals to plunge. Technical indicators also pointed downward. In this context, 70% of the surveyed investors believe spot tin prices will continue to fall but decline will be limited, as selling interest at smelters will be low. Support at RMB 150,000/mt will be strong if smelters refuse to supply low-priced goods. However, prices may continue to weaken if smelters keep providing goods at low prices.
30% market players believe spot tin prices will stabilize, noting that LME tin prices may rose after sharp declines despite the negative news about Cyprus. That, combined with limited low-price resources available to the market, will help spot prices stabilize.