SHANGHAI, Mar. 22 (SMM) – About 30% of Chinese tin smelters surveyed by SMM expect tin prices to rise this week.
These optimists see SHFE tin rising to RMB 112,500-115,000/mt and LME tin up to USD 17,300/mt. They believe LME tin is still in upward track, which will bolster SHFE tin. Strong commodity market will leave market optimistic. Spot tin prices in Shanghai are beginning to exceed SHFE tin prices. Smelters will hold back goods out of optimism.
Another 50% expect SHFE tin to stabilize at RMB 108,500-112,500/mt and LME tin at USD 16,650-17,050/mt. SHFE tin will meet resistance at RMB 113,500/mt due selling pressure at this mark, but has found support at RMB 108,463/mt. Operating rates remain low at smelters, which will lend support to spot tin prices.
The rest 20% are bearish that SHFE tin will drop to RMB 108,500/mt and LME tin will test support at USD 16,500/mt. Orders at downstream producers are falling, hurting demand for tin. Downstream producers became bearish after tin prices fell on Monday, further hurting buying activity.