SHANGHAI, Sept. 29 (SMM) –In Shanghai spot tin market, many downstream buyers have completed pre-holiday stocking, leaving trading poor. Prices for goods from Yunnan continued falling, while prices for less popular brands held stable due to tight supply. Mainstream traded prices fell to RMB 97,500-98,500/mt on September 28.
SMM’s latest survey of market players in domestic tin industry reveals the following results:
60% of them expect spot tin prices in China’s spot market to hold stable between RMB 97,500-98,500/mt before the Chinese National Day holiday. Many suppliers have exited the market as the holiday nears. Supply of cheap goods is tight. On the macro front, US economic recovery will keep the US dollar index high, pressuring base metals. On the other hand, markets are hoping for more stimulus in China due to recent negative economic data. So, the game between longs and shorts will be intense.
The rest 40% are bearish. SHFE tin remained in downward track, and spot prices fell steadily, leaving little room for arbitrage between SHFE and spot markets. Demand will remain weak. SHFE 1601 tin will test support at RMB 95,000/mt after the holiday.