SHANGHAI, Oct. 13 (SMM) –In Shanghai spot tin market, downstream demand picked up, allowing prices to stop falling. Mainstream traded prices were RMB 96,500-97,500/mt on Monday. Goods from Yunnan Tin Group traded at RMB 97,000-97,500/mt.
SMM’s latest survey of market players in domestic tin industry reveals the following results:
65% of them expect spot tin prices in China to stabilize between RMB 96,500-98,500/mt this week. LME tin has met strong resistance and should look for support at USD 15,800/mt. Prices in domestic spot market are immune to rises in LME tin prices over the past few days. Domestic demand is not strong in October, the traditional high-demand period. As such, spot prices will lack upward momentum.
Another 20% are bearish that spot tin prices in China will be vulnerable at RMB 96,000/mt. Tin ore suppliers began to release cargo into the market out bearishness, sending prices down. Lower ore prices encouraged some tin smelters in Hunan to resume production. Several tin smelters said their output in September grew from August. These bearish market players note that persistently tepid demand will also drag tin prices down.
The rest 15% are bullish that spot tin prices in China will rise slightly to RMB 97,000-99,000/mt. Glencore’s zinc output news boosted base metals market. The US dollar index took a hit from cooling expectations for US rate hike later this year. These, plus falling LME tin inventories, will favor LME tin. Strong LME tin, in turn, will push spot prices in China up.