SHANGHAI, Apr. 15 (SMM) – In Shanghai physical market, most transactions were between RMB 140,000-141,000/mt on Monday, little changed from last Friday. Downstream producers in general held to the sidelines, leaving trading muted.
Half of the market players surveyed by SMM see spot tin prices in China hovering near RMB 140,000/mt this week. First, LME tin has little upward momentum on the one hand, but has little room to fall on the other hand. Second, smelters will refrain from selling at lower prices, while buyers will be disinclined to buy at higher prices, creating little change in spot tin prices.
Another 30% are bearish, believing that growing supply of second- and third-tier brand goods and tepid demand will drag tin prices down.
The remaining 20% have painted a rosy picture. These optimistic market players understand that LME tin will rise to challenge resistance at USD 23,600/mt, which will boost sentiment in China’s physical tin market. Meanwhile, smelters will hold back goods at low prices.