SHANGHAI, Apr. 16 (SMM) – Spot tin prices in Shanghai dived to RMB 146,000-147,500/mt on Monday as the slumping LME tin last Friday triggered market fears, fueling wait-and-see sentiment in the market and leaving trading modest. Yunnan Tin Group reported no quotations, and producers for non-leading brands were not willing to move goods. However, the limited supply gave no support to prices.
According to the latest SMM survey, 75% market players believe spot tin prices will fall further this week. The LME tin prices continued slipping on Monday and have room for further decline. Spot tin prices fell along with LME tin, while downstream buyers showed no strong demand and only stayed on the sideline. Although many tin smelters were reluctant to sell goods, supply in the market was ample, which failed to prevent prices from falling. In this context, most investors expect spot tin prices to extend decline this week, with the falls depending on performance of LME tin.
25% market players believe spot prices will stabilize, noting that LME tin prices are expected to stop falling, and the brief panic will unlikely result in a new round of falls. Besides, the low selling interest of smelters, including Yunnan Tin Group will help prices stabilize.