SHANGHAI, July 27 (SMM) - SHFE tin dropped overnight and continued to fall 2.46% in the morning session today. As of noon, the decline was narrowed to 1.65%.
In the spot market, the average spot price of SMM1# tin today was 192,000 yuan/mt, down 2.04% from yesterday. In the spot market, the quotations of some smelters lowered along with the falling spot prices in the morning session, and smelters continued to weakly hold prices firm. According to the feedback from traders, quotations in the market increased in the early trading today, but spot premiums did not changed much as the spot prices dropped. The market transaction improved, but trades in Guangdong were poorer those those in Shanghai. Downstream enterprises only purchased on rigid demand. Low-level pending orders were prevalent, and brands with low premiums were willingly accepted.
According to SMM analysis, fundamentally, the warehouse receipts at SHFE of tin decreased 95 mt to 3,287 mt yesterday, but the spot trades were poor. The LME inventory rose slightly, mainly due to the increased inventory in Asia. As the import profit window remained closed, the quotations of imported products in the spot market were relatively low. At present, discounts of mainstream quotations are lower than 1,000 yuan/mt. SMM believes that the supply and demand will remain weak in the short term, and that SHFE tin will continue to be rangebound. As inflows of market capital are limited, and the tin prices are more likely to fluctuate at low levels.