SHANGHAI, Oct. 29 (SMM) – Mainstream traded prices in Shanghai spot tin market were RMB 146,700-150,500/mt on Monday, with a few deals made at RMB 146,500/mt. Branded secondary tin from Guangdong were quoted at RMB 146,000/mt. Trading was modest and prices virtually held steady, despite a few resources offered at lower prices. Producers of branded tin held quotations firm, helping support spot prices.
SMM’s most recent survey indicates that 60% of industry insiders believe tin prices will remain at the current levels this week. Market confidence is lifted by prediction that the Fed will not commence QE tapering in its October policy meeting. However, the credit crunch remains a major concern, pressuring LME tin prices. As a result, LME tin will unlikely make any breakthrough this week, with spot tin prices also remaining stable.
25% of market players believe tin prices will rise this week. These investors expect that LME tin prices will extend gains once standing above USD 23,000/mt, driven by the positive expectation for Fed’s decision about the QE. In spot tin markets, the supply glut has eased lately following months of depletion. When combined with satisfactory LME tin price movements and low selling interests among tin smelters, tin prices will find solid support. As such, some market players believe that spot prices will rise should LME tin cross above the resistance at USD 23,300/mt.
The remaining 15% of industry participants still foresee downside risk for tin prices, considering the strong resistance confronting LME tin and sluggish demand downstream, but expect spot prices will find support at RMB 145,000/mt.