SHANGHAI, Oct. 14 (SMM) – In Shanghai spot tin market, most deals closed between RMB 137,000-139,500/mt on Monday. Downstream producers showed little interest out of growing bearishness and poor orders.
SMM’s recent survey of market players in China’s domestic tin industry reveals the following results:
Half of those surveyed hold bearish views: (i) technical indicators suggest that LME tin prices are vulnerable at USD 20,000/mt this week; (ii) orders at downstream producers, though up from August, are still considered poor. This, along with growing supply, may send tin prices in domestic spot market down to RMB 136,500/mt.
Another 40% expect tin prices to stabilize: (i) LME tin prices will find support at USD 20,000/mt; (ii) supply will fall and orders at downstream producers increased compared with August, which will help keep tin prices in domestic spot market stable between RMB 137,000-139,500/mt.
The remaining 10% express rosy opinions: (i) LME tin prices may bounce back to USD 20,600-20,700/mt following continuous declines; (ii) the depletion of cheap goods will help push the low-end price in domestic spot market up above RMB 137,500/mt.