SHANGHAI, Jul. 2 (SMM) – Spot tin prices were mainly between RMB 138,000-139,000/mt on Monday, with some transactions done at RMB 138,000/mt. Trading remained modest with market awaiting guides from LME tin, but limited supply offered some support to prices.
SMM survey shows that 75% of industry insiders believe spot tin prices will extend decline this week, believing that LME tin prices tend to slip and test support at RMB 19,500/mt. As a result, spot tin prices which lack any buying support are bound to fall, but the decline in prices should depend on smelters, as most smelters cut supplies recently due to falling tin prices, helping bolster tin prices. However, spot tin prices will drop if smelters increase supplies due to financial pressures.
The remaining 25% market players believe spot tin prices will hold steady this week due mainly to the limited supplies. The current low tin prices have kept many smelters on the sidelines. Despite soft consumption, spot prices could remain stable with low-priced goods consumed up. In this context, smelters may continue to hold back goods given cost pressure if LME tin prices fall further, keeping prices stable.