SHFE Tin Dropped for Two Consecutive Days amid Bearish Sentiments, Plunging 4.38% on Tuesday

SHANGHAI, Jan 25 (SMM) – The SHFE tin has dropped for two straight days after the previous surging, and it has closed 4.38% lower in the intraday trading today. According to SMM analysis, the prices fell due to the following factors:

1. The pessimistic sentiments in the commodity market

The overall sentiments in the non-ferrous metals market and other commodity markets were relatively pessimistic under the impact of bearish overseas market. The investors withdrew from the market, which dragged down the prices.

2. The tin supply is expected to exceed the demand in the short term, as many downstream enterprises from the tin industry chain have taken the CNY holiday earlier, which weighed on the SHFE 2203 tin contract.

3. In the past few trading days, the investors got in and out of the market frequently, and the longs have left the market with profits to avoid the price volatility during the CNY. It caused the plunge of the prices today.

The spot prices dropped as well today, but the decline was slighter than the futures prices.

1. The spot sellers and buyers are less sensitive to the price fluctuations than the participants in the futures market approaching the CNY.

2. The smelters held relatively firm to the quotations amid the recent supply shortage, which lifted the spot premiums and supported the spot prices.