SHANGHAI, Mar. 15 (SMM) – About 30% of Chinese tin smelters surveyed by SMM expect tin prices to rise this week.
These optimists see spot tin prices in Shanghai rising to RMB 112,500-114,000/mt. Yunnan Tin Group closed for maintenance in April last year. Markets are expecting the company to do the same this year. Low LME tin stocks will allow LME tin to break through USD 17,000/mt and head for USD 17,300/mt. SHFE tin will rise to RMB 114,000-115,000/mt after last week’s correction.
Another 50% expect spot tin prices in Shanghai to stabilize at RMB 109,000-112,000/mt. SHFE tin will hover around RMB 110,000/mt, pressured by the 5-day moving average but supported by tight supply in spot market. Downstream producers in spot tin market will source only as needed. LME tin should test resistance at USD 17,000/mt and support at USD 16,600/mt.
The rest 20% are bearish that spot tin prices in Shanghai will drop to RMB 106,000/mt. SHFE tin has corrected down after continuous gains. Poor demand in domestic market will drag spot tin prices down. SHFE tin will look for support at the 20-day moving average if it loses support at the 10-day moving average. LME tin will drop to the 10-day and 20-day moving averages and test support at USD 16,200/mt.