SHANGHAI, Nov. 10 (SMM) –In Shanghai spot tin market, some downstream producers entered the market as prices dropped at a slower pace. Mainstream traded prices were RMB 91,000-92,000/mt on Monday. Goods from Yunnan Tin Group mainly traded at RMB 91,700-92,300/mt.
SMM’s latest survey of market players in domestic tin industry reveals the following results:
65% of them are bearish that spot prices in Shanghai will head toward RMB 90, 000/mt, LME tin will fall below USD 14,500/mt and that SHFE tin will test support at RMB 90,000/mt this week. Poor demand and fragile market sentiment have been the major reasons behind recent price declines. China’s foreign trade data for October missed forecasts, and incoming economic data are expected to remain poor. Indonesia exported 9,633.1 mt of tin in October, up 38% YoY. While only three companies in Indonesia are qualified for exports under new export rules, the amount of tin exported by them could meet market demand. Tin ore suppliers in China keep cutting prices to generate cash, reducing input costs for domestic tin smelters. Cheaper ore from Myanmar also allows room for ore prices to fall.
The rest 35% expect spot prices in Shanghai to stay at current lows of RMB 91,500-92,500/mt. They noted that prices should stabilize after two weeks of declines and that RMB 90,000/mt mark is a key psychological support level for most sellers.