SHANGHAI, Jul. 26 (SMM) – SMM’s survey of major Chinese tin smelters over their opinions on this week’s price outlook shows the following results.
About 55% of them expect spot tin in Shanghai to stabilize at RMB 116,500-118,500/mt. LME tin will move at USD 17,600-17,850/mt and SHFE 1609 tin will move at RMB 116,000-118,500/mt. It is expected that the US Fed will keep interest rate unchanged during its July meeting, which will prevent the US dollar index from rising, thus offering some relief to tin prices. LME tin should fall initially and then rise.
Another 25% expect spot tin in Shanghai to drop to RMB 115,000-117,500/mt. Domestic commodity market softened, with agricultural products and ferrous metals prices under heavy selling pressure, and base metals prices also under pressure. SHFE 1609 tin will likely fall to RMB 113,500/mt if it loses support at RMB 115,000/mt. LME tin will head to USD 17,250/mt on strong US dollar and negative technical side.
The rest 20% are bullish that spot tin in Shanghai will rise to RMB 117,500-119,000/mt. Some tin smelters cut or halted production because of environmental protection inspections or natural disasters, reducing supply and offering support to tin prices. LME tin will move at USD 17,800-18,200/mt and SHFE 1609 tin will fluctuate at RMB 118,500-120,000/mt.