SHANGHAI, Nov. 26 (SMM) – In the Shanghai tin spot market, prices were virtually unchanged between RMB 143,300-146,000/mt on Monday. Trading was anemic as the range-bound trading in LME tin market weakened the already soft trading sentiment. A small amount of goods were traded at RMB 143,000/mt in the afternoon session, with no improvement reported in trading.
With regard to price outlook this week, 65% of market players expect tin prices to hold stable this week. The continuous improvement in US economy increasingly triggered market concerns over the QE tapering. The minutes of the US Federal Reserve October meeting showed a possible tapering at one of its next meetings. This Thursday is the Thanksgiving Day, and trading is expected to be light, with sideways trading expected to continue in the tin market.
25% of them believe that tin prices will fall this week. An overall bearish sentiment and unfavorable technical indicators led to their pessimism. If LME tin falls below USD 22,600/mt, domestic spot tin market sentiment will also be hurt. Besides, growing supply from smelters at the year-end to generate cash will further weigh down on spot prices.
The rest 10% of participants expect prices to edge higher this week. The optimists believed that LME tin prices would advance, and constant declines in LME tin inventories will also strengthen their confidence. Refined tin exports from Indonesia have fallen significantly since the introduction of its new export policy. Such conditions are expected to continue for the foreseeable future as no signs show that Indonesian government will ease its regulations on exports. This will serve a positive factor on tin prices. If LME tin rises above USD 23,000/mt, domestic tin prices will also be buoyed up.