[SMM Analysis] Tin inventories on the two exchanges fell in Shanghai period, tin opened up more than 1% in horizontal trading.

SMM5 June 6: today Shanghai tin high open horizontal shock, as of the end of the day, Shanghai tin main contract 2007 closed at 128680 yuan / ton, up nearly 1.3%, intraday rose to 129700 yuan / ton, close to the 130000 mark.

On the inventory side, Lunxi inventories fell sharply during the May Day holiday, falling 10.37 per cent to 5100 tonnes, refreshing their lowest level since August 15, 2019, according to (LME) data from the London Metal Exchange. Data released last year showed that Shanghai tin inventories had continued to decline since February, falling to 3572 tonnes in the week to April 30, also refreshing more than a five-month low.

On the domestic side, macroscopically, the overall trend of the tin city in the recent period is still relatively more affected by the macro level, and by the confirmation of the dates of the two sessions, the rising trend of crude oil prices, and the 28th meeting of the Financial Stability and Development Board of the State Council on May 4, to listen to reports on the progress of work such as supporting economic recovery, speeding up the reform and development of small and medium-sized banks, cracking down on capital market fraud, and so on. It is expected to form a certain support for the trend of tin prices. After the opening of early trading today, Shanghai tin 2006 contract reduced upward, the main 2007 contract long continued to increase positions, in the short term, Shanghai tin is still high wide shock finishing trend.

SMM expects the Shanghai tin 2007 contract to maintain a high wide concussion trend in the short term, with the upper resistance near the previous high point of 132000 yuan / ton and the support level near the upper rail of 126000 yuan / ton in the early stage of the test. Shanghai tin 2006 contract is expected to support at the bottom of 128000 yuan / ton, the upper resistance is around 134000 yuan / ton.

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