SHANGHAI, Dec. 29 (SMM) –75% of Chinese tin smelters surveyed by SMM are pessimistic that tin prices will fall this week.
Those pessimists are worried that spot tin prices in Shanghai will fall to RMB 93,000/mt and LME tin will test support at USD 14,500/mt or USD 14,000/mt. Recently released Chinese economic data showed sluggishness in Chinese economy, dampening market sentiment. Domestic smelters have resumed supply since this past weekend, adding to market supply. Downstream demand remains weak. SHFE tin has begun pulling back and is on track for more losses.
The rest 20% expect spot prices in Shanghai tin market to stabilize between RMB 94,000-95,000/mt. The recent pullback in SHFE tin is mild, which will have little impact on spot prices, these market players expected. Some domestic tin smelters cut production, reducing market availability. Some downstream producers will build up stocks before the upcoming New Year holiday. All these will support spot tin prices. LME tin is expected to find support at USD 14,400/mt.