SHANGHAI, May 31 (SMM) – SMM’s survey of major Chinese tin smelters over their opinions on this week’s price outlook shows the following results.
Half of them expect spot tin in Shanghai to hold stable at RMB 107,500-109,500/mt. The nearing of traditional off-season will prevent spot prices from rising. SHFE 1609 tin has met resistance at the 20-day moving average, but has also found support at the 5-day and 10-day moving averages, with prices expected at RMB 106,500-108,500/mt. LME tin will likely rise slightly to near USD 16,300/mt but then fall back to test support at USD 15,400/mt, due to a strong US dollar.
Another 35% expect spot tin in Shanghai to fall to RMB 105,000-106,500/mt, citing off-season as the main reason. Tin consumption will enter the traditional off-season in June. The presence of deliverable goods and inflows of less popular brand goods will also put downward pressure on prices. LME tin will look for floor at USD 15,400/mt. SHFE 1609 tin will drop to previous low of RMB 104,000/mt.
The rest 15% are bullish that spot tin in Shanghai will rise to RMB 108,000-110,000/mt. SHFE 1609 tin will see upward corrections after earlier losses, and the technical side is positive, with prices expected to rise to RMB 108,000-110,000/mt. Guangdong recently stepped up environmental protection inspections. It is said that production at some local small companies has been negatively affected, tightening local supply. Despite a strong US dollar, LME tin will experience a technical rally after previous losses, and test resistance at the 10-day moving average.
