SHANGHAI, Aug. 15 (SMM) – China’s tin market is not expected to get rid of weakness for the foreseeable future due mainly to sluggish demand, Shanghai Metals Market foresees.
This week, the low-end price of tin in China’s domestic market moved up following supply declines. However, overall operating rate at major domestic soldering tin producers is down on a yearly basis, according to SMM survey.
Falling orders and tight liquidity will give little support to domestic tin price, SMM expects.
Supply in China’s tin market has been falling recently, but domestic tin output totaled 92,978 tonnes during the first six months of the year, up 16.8% from a year earlier, according to China Nonferrous Metals Industry Association.
SMM attributes the recent decline in market supply mainly to production halts at some producers, stockpiling by large tin producers and exports. Hence, little improvement in consumption will not help buoy up the market.