SHANGHAI, Oct. 9 (SMM) – In Shanghai spot tin market, most deals closed between RMB 138,000-140,000/mt on Wednesday. Some Nanshan and Jinlong brand tin traded at RMB 137,500/mt, while Yunxi brand tin traded at RMB 139,500/mt. Falling LME tin prices drove downstream buyers in China’s domestic market to the sidelines. But limited stocks prevented prices from falling sharply.
SMM’s recent survey of market players in China’s domestic tin industry reveals the following results:
60% of those surveyed hold bearish views: (i) LME tin prices hit a 14-month low of USD 20,100/mt during the Chinese National Day holiday, and may be vulnerable at USD 20,000/mt this week; (ii) downbeat Chinese and European economic data and the IMF’s cut of forecast for global economic growth for this year and the next will dampen market sentiment; (iii) the US dollar index stays high around 86, pressuring base metals; (iiii) pre-holiday stockpiling means that demand will be weak after the weeklong holiday. High offers in China’s spot markets scared buyers away yesterday.
The remaining 40% expect LME tin prices to find strong support at USD 20,000/mt. Despite weak demand, limited supply and cost support will prevent prices in China’s spot tin market from moving lower.