SHANGHAI, Jun. 24 (SMM) – In Shanghai physical tin market, mainstream traded prices remained stable between RMB 138,000-140,000/mt on Monday. Buyers bought on an as-needed basis out of bearishness and against the off-season.
70% of the market players surveyed by SMM expect spot tin prices in Shanghai to hold stable between RMB 138,000-140,000/mt this week. On the one hand, demand will remain tepid, dampening any chance for a rise in tin prices. On the other hand, smelters will hold back goods at lows, preventing prices from falling.
Another 20% are bearish that spot tin prices in Shanghai may follow LME tin down below RMB 138,000/mt this week.
The remaining 10% believe that spot tin prices in Shanghai will break through RMB 140,000/mt for two reasons. First, HSBC’s flash China manufacturing PMI for June came in positive. Chinese Premier Li Keqiang reaffirmed his confidence that China will be able to accomplish the 7.5% GDP growth target for this year, boosting confidence over demand in the world’s top metals consumer. Second, smelters will refrain from selling at low prices, keeping supply limited.