SHANGHAI, Oct. 8 (SMM) – On Tuesday, spot tin prices in Shanghai rose significantly to RMB 151,000-154,000/mt boosted by the strong LME tin during the Chinese National Day holiday. Tin smelters mostly quoted between RMB 155,000-156,000/mt. However, consumption did not improve, with inquiries from downstream buyers limited, leaving trading muted. Thus, the rising prices only stocked wait-and-see sentiment in the market.
SMM poll on tin price trends this week revealed that 45% of market players expect tin prices will remain stable for the rest of the week following the sharp rally on Tuesday, as the limited transactions may pose hurdle for any further price increase. Besides, LME tin prices met resistance at USD 24,000/mt, and spot tin may gain little upward momentum should LME tin prices fail to cross above the resistance. However, as market confidence was shored up by the strong LME tin lately, spot prices may find support at RMB 150,000/mt.
40%of market participants expect further rise in tin prices, hoping that LME tin will break through the resistance and that the tin trading policy in Indonesia will continue to underpin tin prices.
The remaining 15% of market players are bearish, noting that LME tin prices will stage a pullback after the strong rebound. That, combined with the weak demand in domestic markets, will hurt tin prices. Moreover, uncertainty resulting from the US government shutdown will also dent market mood and negatively affect base metals prices.