SHANGHAI, Oct. 28 (SMM) – In Shanghai spot tin market, downstream wait-and-see sentiment resurfaced on Monday. Most deals closed between RMB 134,500-137,000/mt, with the high-end price down RMB 500/mt from a day earlier. Cheap tin from Bolivia gained favor. Nanshan and Jinlong brand tin traded between RMB 134,500-134,800/mt, while goods from Yunnan traded between RMB 135,000-136,500/mt.
SMM’s recent survey of market players in China’s tin industry reveals the following results:
60% of those surveyed expect tin prices in China to stabilize this week. On the macro front, recent US economic data are positive, versus mixed economic figures from the euro zone and worrisome economic conditions in China. Caution will dominate the market before the US Fed announces its policy decision. In this scenario, LME tin prices are likely to drop, but will find support at USD 19,000/mt. Spot tin prices in China will probably hold stable between RMB 135,000-137,000/mt.
The remaining 40% hold bearish views: (i) on the technical side, LME tin prices may be vulnerable at USD 19,000/mt; (ii) in China’s domestic market, poor downstream demand will drag prices down, but any downside room should be limited since smelters will hold back goods at lows.