SHANGHAI, Aug. 25 (SMM) – Plunging SHFE tin undermined sentiment in Shanghai spot tin market. With panic spreading, trading came to a virtual standstill. Mainstream traded prices fell to RMB 103,500-105,500/mt on August 24. Goods from Yunnan Tin Group traded at RMB 105,000-105,500/mt.
SMM’s latest survey of market players in domestic tin industry reveals the following results:
75% of them are bearish toward tin prices this week. Spot tin in Shanghai will test support at RMB 100,000/mt. Concerns over China’s economic outlook sparked heavy selloffs in global stock market. SHFE tin plunged, creating ripple effects in physical market. Consumption is poor in the traditional off-season. Some smelters have cut output against poor market conditions and raw material shortages. However, these cuts are far from enough to reverse current supply glut.
The rest 25% expect tin prices to stabilize this week. Most tin ore producers have halted shipment, given current poor prices. Tin smelters also began to cut production. Should SHFE tin rebound after sharp fall, spot tin prices might come to stabilize.