SHANGHAI, Apr. 2 (SMM) – Despite the lack of guide from LME tin prices, spot tin prices in China was dragged down on Monday by falling SHFE copper and depressed demand. Mainstream traded prices for spot tin were between RMB 149,500-152,000/mt, with a few deals done at RMB 149,000/mt. Trading was light due to falling prices, and market was bearish to tin prices in the short term.
There are only three trading days this week in China’s spot market given the Qingming Festival. SMM survey shows that 60% of surveyed market players believe tin prices will extend decline this week. The plunging SHFE copper on Monday left many investors bearish to market outlook. Although the US economic data were relatively positive, the influence of the European debt crisis and tightening monetary policy in China was stronger. Besides, the slight rebound in LME tin prices last week will unlikely give great support to domestic tin prices given the oversupply and waning demand in domestic market, leaving downward space for tin prices.
40% market players believe spot tin price should hold steady, noting that LME tin prices may rise marginally to USD 23,600/mt after LME restarts on Tuesday, lending support to domestic spot tin. Moreover, spot market saw fewer low-priced goods on Monday, and most tin smelters were reluctant to move goods, which will also help tin prices stabilize.