SHANGHAI, Aug. 11 (SMM) –In Shanghai spot tin market, falling LME tin and slack demand caused mainstream traded prices to fall to RMB 107,500-108,500/mt on August 10. Goods from Yunnan Tin Group traded at RMB 108,300-108,700/mt.
SMM’s latest survey of market players in domestic tin industry reveals the following results:
60% of them expect tin prices to hold stable this week. SHFE 1509 tin has found solid support at RMB 106,500/mt. SMM’s latest survey has found that more and more tin smelters in China have cut output, due to poor demand and difficulty in finding cheap raw materials. Tin ore prices began falling last week, but fell slower than tin prices, which will offer support to tin prices. Production cuts, though not to have an immediate impact on market supply, will allow smelters to hold back goods at lows.
Another 25% are bearish. LME tin will test support at USD 14,600/mt due to a strong US dollar amid expectations for US interest rate hike. This, plus the ongoing off-season in domestic market, will push spot tin prices down below RMB 108,000/mt to RMB 107,000/mt.
The rest 15% are bullish. SHFE 1509 tin might rise to challenge resistance at RMB 109,200/mt due to upward correction following continuous declines. This will help drive up spot tin prices in domestic market to RMB 109,000-110,000/mt.