SHANGHAI, Dec. 15 (SMM) –45% of Chinese tin smelters surveyed by SMM are optimistic over tin prices this week.
Another 35% expect prices to stabilize, while the rest 20% paint a dim picture.
These optimists see spot tin prices in Shanghai rising to RMB 89,000-90,000/mt. Many tin smelters in China have cut or halted production against continuous price declines, tightening market supply. More smelters are likely to follow suit. Production cuts news and stockpiling rumor are flooding in other base metals market, which will offer upward momentum to tin prices as well.
Another 35% expect LME tin to move between USD 14,400-14,800/mt, SHFE 1601 tin to meet resistance at RMB 89,000-90,000/mt and spot prices in Shanghai to hold stable at RMB 87,000-88,000/mt. Caution before the US Fed’s policy meeting will keep LME tin in check. Speculative activity will cool, which will deprive prices of upward momentum. On the other hand, tight supply will support prices.
The rest expect SHFE to fall back to RMB 85,000/mt or even below the mark after continuous gains. Weak SHFE and demand will drag spot tin prices in Shanghai down to RMB 85,000/mt.