SHANGHAI, Jun. 25 (SMM) – Spot tin prices in Shanghai held steady at RMB 138,500-139,500/mt on Monday. LME tin prices fell back below USD 19,500/mt after returning to USD 20,000/mt last Friday, hurting market confidence. Spot tin prices in China remained relatively stable with trading still light.
SMM survey reveals that 80% of market players expect spot tin prices to fall this week considering the weakening LME tin. The strengthening US dollar index is weighing on base metals markets, while China’s cash crunch led domestic stock to fall below 2,000. Consequently, LME tin prices may not be able to stay above USD 19,000/mt. In domestic spot markets, the onset of traditional low-demand season further impair the already sluggish demand, combined with continuous falls in tin prices, market was dominated by strong wait-and-see sentiment. Despite the smelters hold back goods, supply still outstrips demand, and spot tin prices may continue the downtrend.
20% of market players believe spot tin prices will stabilize, expecting LME tin price to rebound after the plunges. In addition, some investors found that spot prices in China were not so correlated with LME tin prices, so domestic prices are less affected by LME tin. Thus, these investors believe domestic spot tin prices will stabilize if LME tin prices stop falling this week.