SHANGHAI, Jul. 16 (SMM) – Mainstream traded prices in Shanghai tin market were RMB 137,000-138,000/mt, with a few goods from Jiangxi traded at RMB 136,800/mt. Smelters of non-leading brands were unwilling to move goods, with low-priced goods consumed up gradually, giving support to spot tin prices. However, high-end prices remain difficult to rise, narrowing moving range for prices. Trading was still weak.
75% of market players surveyed by SMM expect spot tin prices to remain flat this week, as LME tin will be unable to break through the current resistance but support at USD 19,500/mt remains strong. As such, LME tin prices may be stable unless major negative event is reported. In China’s spot tin markets, supplies of branded tin will remain limited as some smelters refrain from selling. Despite weak consumption, low-end prices will unlikely fall further.
The remaining 25% investors believe tin prices will continue to fall, noting that LME tin prices still face downside risk with strong US dollar will weigh down base metals. Once LME tin fall below USD 19,500/mt, sentiment in spot tin markets will be largely hurt, and non-leading producers will start selling goods out of fear for further declines, dragging spot tin prices lower.