SHANGHAI, May 19 (SMM) – Tin prices in Shanghai spot market fell to RMB 117,000-119,000/mt on Monday due to poor demand. Goods from Yunnan Tin Group was offered at RMB 120,000/mt.
SMM surveyed market players in domestic tin industry.
20% of them are bullish over tin prices this week: The US dollar index hovered at lows on disappointing US economic data released this past weekend. This will help LME tin rise to challenge resistance at USD 16,300/mt. Should LME tin rise, SHFE 1507 tin contract will break through RMB 120,000/mt and the low-end tin prices in domestic spot market will rise above RMB 118,500/mt.
Another 45% expect tin prices to hold stable this week: LME tin will move between USD 15,800-16,400/mt. SHFE 1507 tin contract will consolidate between RMB 118,500-120,000/mt. Supply in domestic spot market will remain low since Yunnan Tin Group and China Tin Group will not return to production until next week at the earliest. As such, spot tin prices will stabilize between RMB 118,000-120,000/mt.
The rest 35% are bearish: LME tin will test support at USD 15,800/mt, while SHFE 1507 tin contract will fall to RMB 117,000-118,000/mt. Small and medium tin smelters in China will become eager to sell, but demand will remain poor. This will drag spot tin prices down to RMB 116,000/mt.