SHANGHAI, Oct. 22 (SMM) – Mainstream traded prices for spot tin in Shanghai were between RMB 146,300-150,000/mt on Monday, flat with last Friday’s level. Nanshan, Jinlong, Yunxiang, and Yinsheng were mainly sold at RMB 146,500/mt, while resources of Yunnan Tin Group were traded around RMB 150,000/mt due to limited supply. Despite recovering LME tin prices, spot tin prices failed to gain any support, and spot trading remained modest.
China’s tin prices were mainly influenced by LME tin prices and market morale recently. Downward pressure confronting spot prices may ease somewhat following the sharp declines last week. A lack of any substantial support from real demand caused prices to fall quickly following the rapid rises around the Chinese National Day holiday.
According to SMM’s latest survey, half of market players contacted by SMM believe prices will hold steady this week. LME tin prices found support at USD 22,700/mt but also met strong resistance at higher levels, so prices are expected to stabilize around the level this week. In China’s spot markets, prices for most brands, except for Yunnan Tin Group, were relatively low, but showed no sign of further declines. As such, spot tin prices will likely level out, following the trend of LME tin.
30% of market players hold that spot tin prices will rally. These investors expected LME tin prices to break through the resistance at USD 23,200/mt and test USD 24,000/mt as LME tin prices edged up during Asian trading hours on Monday. Spot tin prices also stopped falling on Monday, and may drift higher driven by LME tin prices.
20% of industry participants are still pessimistic, noting that if LME tin prices fail to bounce back, prices may test support at USD 22,700/mt and then USD 22,300/mt, and even lower level of USD 22,000/mt. Spot tin prices will slip in tandem with LME prices and may find support at RMB 145,000/mt.