SHANGHAI, May 12 (SMM) – In Shanghai spot tin market, most deals closed between RMB 120,000-121,000/mt on Monday. Goods from Yunnan Tin Group traded between RMB 121,000-121,500/mt. A small number of processors and trades entered the market. Overall trading was moderate.
SMM surveyed market players in domestic tin industry.
45% of them are bullish over tin prices this week: SHFE 1507 tin contract is expected to challenge RMB 126,000/mt. LME tin has found solid support and will challenge resistance at RMB 16,400/mt. In domestic spot market, suppliers will hold back goods out of bullishness, which will push spot prices up to RMB 125,000/mt.
Another 35% expect tin prices to hold stable this week: LME tin should hover around USD 16,000/mt. SHFE 1507 tin contract is expected to move between RMB 119,500-123,500/mt. The recent tin price rise was due to temporary closures of two large tin smelters and looser monetary policy. Despite production suspensions at Yunnan Tin Group and China Tin Group, these two smelters still have goods on hand available to sale. As such, prices in spot market are expected between RMB 120,000-122,000/mt.
The rest 20% are bearish: Prices in domestic spot market might fall to RMB 118,000-120,000/mt, due to downward corrections and a lack of downstream buying.