SHANGHAI, Apr. 23 (SMM) – Mainstream quotes for spot tin in Shanghai were between RMB 140,500-142,500/mt on Monday as LME tin held steady last Friday. However, as supply for non-leading brands declined and downstream buyers increased purchases, traders were unwilling to sell goods, with prices for non-leading brands up to RMB 141,000-141,500/mt.
SMM survey showed that 60% of market players expect spot tin prices will continue to fall this week. LME tin prices fell to a low of USD 20,240/mt on Monday, and will likely test lower at USD 20,200/mt. Bearish investors believe the negative influence of slumping LME tin will not be offset by the slight improvement in consumption. Besides, economic reports in the US and Europe remained negative, and market was still under the influence of plunging gold. That, combined with concerns triggered by the possible interest rate cut by the ECB and lower credit rating for the UK announced by the Moody’s and Fitch, pessimism is prevailing in the market.
30% market players believe spot tin prices may stabilize this week, noting that the LME tin will stop falling this week as prices have not yet fallen below USD 20,200/mt and the support at USD 20,000/mt is strong. In this context, some investors expect LME tin to hover around USD 20,500/mt, and spot tin prices will unlikely drop further but to remain flat.
The remaining 10% investors are optimistic, expecting tin prices to edge up. These investors believe LME tin prices may start technical corrections to test USD 20,700/mt. In domestic markets, Yunnan Tin Group still held prices firm at RMB 154,000/mt, and quotations for other leading brands also showed a sign to inch up. Besides, supply for non-leading brands reduced, leaving cargo holders reluctant to move goods. As such, some market players believe mainstream prices for spot tin may move up slightly.