SHANGHAI, Feb 22 (SMM) - The SHFE 2303 tin contract rebounded sharply last night and rose 3.13% and closed at 221,720 yuan/mt. The open interest decreased 1,569 lots to 41,238 lots.
The domestic tin inventory under warrants fell sharply. The spot discounts expanded, hence the imported goods were less cost-effective.
The SHFE 2303 tin contract rebounded sharply last night and rose 3.13% and closed at 221,720 yuan/mt. The open interest decreased 1,569 lots to 41,238 lots. Amid the bullish outlook, the longs increased their positions.
To sum up, despite the high social inventory, the sharp decline in warrant inventory provided support for SHFE tin prices. The upstream smelters has not yet fully recovered, and the raw material stocks of downstream enterprises have been digested to a certain extent. Imported tin continued to arrive, but imported goods were less cost-effective than the early stage. The overall demand for spot goods was still under recovery, and the discounts were relatively stable.
