SHANGHAI, Jun. 4 (SMM) – On June 3, traded prices in Shanghai spot tin market were mainly at RMB 143,000-144,500/mt. Prices for brands from Jiangxi were RMB 143,000/mt, while deals for Yunheng and Yunshan were mainly traded at RMB 143,500-144,000/mt. Yunxi was traded at RMB 144,000-144,500/mt. Trading was still thin with bearishness prevalent in the market.
SMM survey on tin price trends this week shows that 50% market players expect tin prices to fall this week. LME tin prices remained low with strong resistance, and failed to make a breakthrough on Monday despite the general increases in other base metals. Moving range for LME tin prices is also narrowing. As such, some believe LME tin will test lower level at USD 20,800/mt and may fall further to USD 19,500/mt if prices fall below this level. On the other hand, domestic tin consumption remained soft. Despite the upcoming Chinese Dragon Boat, the replenishing demand will be limited given depressed economic conditions.
40% investors believe stop tin prices will remain stable this week. The fallback of US dollar index will certain support to base metals. The China official PMI and PMI data for euro zone nationals were reported positive, lifting market sentiment. Although LME tin prices followed a weak track, the support at USD 20,800/mt will be relatively firm. In this context, the pre-holiday replenishments will help keep spot tin prices stable if LME tin prices manage to hold steady.
The remaining 10% investors believe tin prices may rise this week, noting that although LME tin failed to rally on Monday, the strong trends of other base metals and falling US dollar, as well the rumors that the government will purchase base metals for state reserve, will help boost LME tin prices. This may in turn drive up spot tin prices in China.