SHANGHAI, Dec. 1 (SMM) –55% of Chinese tin smelters surveyed by SMM are pessimistic over tin prices this week.
These pessimists see spot tin prices in Shanghai heading toward RMB 83,000-83,500/mt. The rally in spot prices last Friday was driven mainly by gains in LME and SHFE tin. Spot prices rose slower than futures prices, reflecting still fragile market sentiment and weak demand. tin futures prices have shown signs of a loss of upward momentum. LME tin will move sideways or even look for support if it fails to break through resistance at USD 15,000/mt. SHFE tin will track LME tin and move at RMB 84,000-85,000/mt. In Shanghai spot market, supply, though limited, could meet demand. Once tin futures prices move down, spot prices will follow.
20% another expect LME tin to break through USD 15,000/mt and spot prices in Shanghai to hold stable or even rebound to RMB 84,500-87,500/mt. They noted that LME tin has found sold support at USD 14,800/mt. These market players also cited limited supply in domestic spot market and falling arrivals from smelter output cuts as support. Once tin futures prices stabilize, spot prices will hold firm.