SHANGHAI, Jun. 18 (SMM) – Mainstream traded prices for spot tin in Shanghai remained stable at RMB 140,500-142,000/mt on June 18. Most deals for Jiangxi’s brands were made at RMB 140,500/mt, with a few goods quoted at RMB 140,000/mt. Goods from Yunnan Tin Group were traded at RMB 141,500-142,000/mt, and transactions for Jinhai and Yunheng were made at RMB 141,000-141,500/mt. Trading remained light.
SMM survey reveals that 85% market players believe spot tin prices will continue to fall this week, possibly below RMB 140,000/mt. LME tin prices stabilized in the past two trading days following the continuous declines during the Chinese Dragon Boat Festival, but resistance at USD 20,500/mt was strong. Technically, LME tin prices will likely fall this week with support at USD 20,000/mt, and may fall further toUSD 19,500/mt should prices dip below USD 20,000/mt. In China, the onset of the traditional low-demand season will leave tin consumption still soft, hurting market confidence and driving down tin prices. Meanwhile, tin smelters are not willing to move goods due to low prices, but the sluggish demand is forcing them to cut prices. In this context, most market players believe spot tin prices will continue to drop this week.
The remaining 15% market players believe spot tin price will hold steady this week, noting that LME tin prices stand little chance to break above the current resistance but still find support at USD 20,000/mt. The low selling interest and consumption of low-priced goods will limit the decline in spot tin prices should LME tin prices remain stable. As such, some expect China’s spot tin prices to remain above RMB 140,000/mt this week.