SHANGHAI, Jan. 5(SMM) –80% of Chinese tin smelters surveyed by SMM are pessimistic that tin prices will fall this week.
Those pessimists expect spot tin prices in Shanghai to fall to RMB 90,000/mt and LME tin will test support at USD 14,400/mt or USD 14,000/mt, citing a series of negative factors. 1. Chinese A-share market tumbled; 2. Small and medium smelters in China began resuming supply last week, easing tightness in spot market; 3. Many downstream producers have closed early for the 2016 Chinese New Year holiday due in early February due to a lack of orders; 4. Uncertainty remains over the Chinese economy.
The rest 20% expect spot prices in Shanghai tin market to stabilize between RMB 92,500-94,500/mt. 1. The US dollar index will face downward correction after rising last week, which will giving some relief to LME tin; 2. Tin ore suppliers hold back goods, tightening raw material supply for tin smelters; 3. Production cuts at tin smelters will cut market supply.