SHANGHAI, Feb. 24 (SMM) – #1 tin traded at RMB 139,500-142,500/mt on Monday. Yunnan Tin Group cut offers to RMB 143,000/mt. Yunshan, Jinhai and Yunxiang brand tin traded at RMB 139,500/mt. Consumption was sluggish.
65% of the market players surveyed by SMM expect LME tin prices to remain high this week. First, decline in Indonesia’s tin exports in January and LME tin inventories will offer upward momentum to tin prices. Second, a softer greenback will also lend support to tin prices. Third, despite heavy selloffs in China’s base metals markets due to news on suspension of property-related lending, there was still buying interest in LME tin market. In conclusion, LME tin prices will meet resistance at USD 23,200/mt while finding support at the 10-day moving average.
The remaining 15% are pessimistic that LME tin will retreat to USD 22,450/mt. First, HSBC’s flash China manufacturing PMI in February signals weak manufacturing sector in the world’s second largest economy. Second, many traders surveyed by SMM have reported poor orders. Third, investors may close long positions, which will cause LME tin prices to move lower.