SHANGHAI, Jul. 28 (SMM) –In Shanghai spot tin market, mainstream traded prices fell further to RMB 109,500-111,000/mt July 27. Market was abundant with cheap goods from Yunnan, dragging overall prices down. Trading was thin.
SMM surveyed market players in domestic tin industry.
60% of them are bearish over tin prices this week. Deliverable Yunxi brand tin flooded in. Yunshan brand tin also arrived. Output of Nanshan and Jinlong brand tin increased, which will allow more goods to flow into spot market. The low-end price in Shanghai has fallen to RMB 109,500/mt, and that in Guangdong has dropped to RMB 109,000/mt. Growing supply, combined with slack demand will push spot prices down to RMB 108,000/mt.
The rest 40% expect prices to hold stable. Mining companies said they will refuse to sell tin ore at lower prices, should tin prices drop below RMB 110,000/mt. This will tighten raw material supply for tin smelters. As such, spot tin prices might stabilize around RMB 110,000/mt. LME tin might hold steady at USD 15,000-16,000/mt, supported by technical side. SHFE 1509 tin contract should meet resistance at RMB 110,000/mt.