SHANGHAI, Sept. 15 (SMM) –In Shanghai spot tin market, plentiful supply and poor trading sent prices down. Mainstream traded prices fell to RMB 99,800-100,800/mt in the morning on September 14, and lost another RMB 200-300/mt in the afternoon. Goods from Yunnan Tin Group traded at RMB 100,500-101,000/mt.
SMM’s latest survey of market players in domestic tin industry reveals the following results:
55% of them expect tin prices to stabilize this week. Spot tin should trade between RMB 100,000-102,000/mt. They worry that inflow of deliverable goods into the market will add to supply pressure. Besides, some cargo holders in Guangdong began selling off cargos, pushing up supply. Smelters in China have cut output further since August, but the scale of production cuts is too small to have much impact on market prices. These factors will prevent tin prices from going up. Recent movement showed that rising LME tin has little boost on spot prices in China.
Another 35% see tin prices falling to RMB 99,000/mt. They worry that inflow of deliverable goods and slack downstream demand will worsen supply glut, weighing down prices.
Only 10% see LME tin rising to USD 16,000/mt and spot prices in China rising to RMB 100,500-102,500/mt. LME tin stocks fell to the lowest since January 2009 due to Indonesia’s suspension of tin exports, boding well for LME tin. They expect demand to pick up in September, traditional high-demand period. As long as LME tin could sustain gains, spot prices in China will draw some upward momentum, they noted.