SMM Tin Market Daily Review (2013-7-8)

 

SMM’s latest survey shows that 90% of industry insiders expect spot tin prices to fall this week. Although LME tin prices may present a technical rebound after slumping to USD 19,000/mt, most market players believe the decline in LME tin is not arrested with prices expected to test USD 18,800/mt. Once falling below USD 18,800/mt, prices will head towards a 2012 low of USD 17,000/mt. In China’s spot markets, sentiment was greatly depressed by falling LME tin, with most buyers unwilling to purchase on Monday despite a RMB 2,000/mt price decline and low selling interest among non-leading smelters. In this context, spot tin prices tend to fall further. 

 

Only 10% of investors believe prices may stabilize this week, expecting the rebound in LME tin and limited supplies in spot tin market will help support prices. Some smelters reported that prices have fallen below their costs and were not willing to move goods, which may prevent prices from falling further.