[SMM Express] after the tin price plummeted, the long and short positions were greatly reduced and left the market!

Today, Shanghai tin continued its night trading trend and continued to fluctuate at low levels. as of 13:40 in the afternoon, the main contract between Shanghai and tin was 232520 yuan / ton, down 3.66%. After shanghai tin set an all-time high of 244900 yuan per ton on Tuesday to approach the 250000 class mark, shanghai tin has continued to fall for three consecutive days, down 5.2 per cent from its previous high as of today.

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Spot aspect, this morning Shanghai tin 2109 contract fluctuation is relatively small, the price around 233000 yuan / ton around a narrow range of fluctuations. Upstream smelter situation is stable, traders feedback today's overall market turnover is light, some traders slightly reduced the price of rising water, but the transaction effect is still general. In addition to the strong willingness of production and procurement in the face of rigid demand, the mainstream of downstream enterprises is still waiting to wait and see the future. The overall trading situation of the market is worse than that of yesterday, and today's overall bid price rose sharply compared with that of yesterday due to the sharp drop in tin prices. Today's SMM tin was quoted at 239500 yuan / ton, down 6750 yuan / ton compared with yesterday.

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Renxi plunged more than 6 per cent yesterday afternoon, falling to a low of $31500 a tonne in early July, before recovering only slightly in night trading. During the day, it was at $33500 a tonne, the lowest since July 22. SMM yesterday's "SMM Analysis: a brief Analysis of the reasons for the collapse in Lunxi prices" pointed out that according to SMM analysis, there are three main reasons: market rumors that Myanmar tin imports exceeded expectations in August. From the recent survey of SMM, since August, some tin mines have entered China by sea, the overall production of refineries in Yunnan is stable, and the processing fees have been increased month-on-month, showing a loose trend of short-cycle mines. The recent weakening of Sino-US economic data, coupled with the strengthening of Fed expectations of subsequent monetary tightening, has reduced capital risk appetite under the tightening of liquidity expectations. Overseas MSC refineries plan to gradually full production, coupled with the recent accumulation of LME tin ingot inventory, LME tin 0-3 structure fell from US $1000 to US $500.

Yesterday, the trend of Shanghai-tin night market opened sharply lower under the influence of the collapse of Lunxi outside the market, and then the price rebounded quickly and the intraday price was as high as 234330 yuan / ton, and then the market fluctuation slowed down around a narrow range of 232000 yuan / ton. From a fundamental point of view, since August, some tin mines have entered China by sea, showing a loose trend of short-cycle mines. From the analysis of the disk trend, the trend has been supported near the previous important low of 228000, where both sides of the long and short positions have largely reduced their positions and left the market. It is not difficult to see that due to the large range of low prices and the early market to high positions mainly, long and short parties do not have enough chips to take this opportunity to launch a confrontation. Taking into account the above situation analysis, today's intraday follow-up funds to enter the market will, it is expected that today's upper pressure of 236000 yuan / ton, the lower support of 228000 yuan / ton.