SHANGHAI, Sept. 22 (SMM) – In Shanghai spot tin market, growing supply drove prices down. Mainstream traded prices fell to RMB 99,000-100,000/mt on September 21. Goods from Yunnan Tin Group traded at RMB 99,600-100,300/mt.
SMM’s latest survey of market players in domestic tin industry reveals the following results:
60% of them expect spot tin prices in Shanghai to stabilize between RMB 99,500-101,000/mt this week. On the one hand, production halts at Jinlong Tin will cut market supply. Downstream producers will replenish stocks before upcoming Chinese National Day holiday. These will support tin prices. On the other hand, LME tin lost upward momentum and might move around USD 15,000/mt in the near term, which will prevent spot prices in China from rising. Market sentiment remains fragile after the US Fed decided not to raise interest rate and Chinese economy and stock market off no reason for optimism.
The rest 40% are bearish. Tin ore (Sn 60%) prices in Jiangxi have fallen to near RMB 80,000/mt. Lower raw material prices might give tin smelters incentive to produce. LME tin is vulnerable at USD 15,000/mt mark. With bearishness looming in SHFE tin market, spot prices will take a hit. Any decline in spot tin prices should be limited, though, due to pre-holiday stocking.