30% of Chinese Tin Smelters Pessimistic Over Tin Prices This Week: SMM Survey

SHANGHAI, Dec. 8 (SMM) –30% of Chinese tin smelters surveyed by SMM are pessimistic over tin prices this week.

Another 45% expect prices to stabilize, while the rest 25% paint a rosy picture.  

These pessimists see spot tin prices in Shanghai heading toward RMB 82,000/mt. Positive US non-farm payrolls are raising hopes for US rate hike in December. This will favor the US dollar, possibly sending LME tin down to USD 14,400/mt. Weaker LME tin will drag spot prices in Shanghai.  

Another 45% expect LME tin to hover around USD 15,000/mt, SHFE 1601 tin to move between RMB 84,000-86,000/mt and spot prices in Shanghai to hold stable at RMB 83,000-85,000/mt. Spot prices in Shanghai have found strong support at RMB 83,000/mt recently, supported by disappearance of massive selloffs by domestic tin smelters, and relatively stable LME and SHFE tin. 

The rest note that limited supply in Shanghai spot market and less inflow of cheap goods will push spot prices up slightly. They added that firm LME tin will also cheer market up.