SHANGHAI, Aug. 13 (SMM) – Spot tin prices continued to rise on Monday, with mainstream traded prices at RMB 143,000-144,000/mt in the morning, but resources quoted below RMB 143,500/mt were rarely seen at midday. Low-priced goods were still favored by buyers. Inquiries increased, but transactions were sparse at high prices. In the afternoon, as the continued rally in LME tin shored up market confidence, cargo holders raised quotes, driving traded prices to RMB 144,000-145,000/mt, but deals were seldom made at above RMB 144,500/mt.

 

SMM survey on tin price trends this week shows that 60% of investors believe tin prices will continue to rise due to positive expectation for LME tin prices amid strong economic data released lately. Besides, domestic tin smelters and traders refrain from selling and keep raising quotes, waiting for further price increase. This may give strong support to spot tin prices. Despite limited transactions, downstream enterprises buying on the way up increased purchases due to rising prices. That, combined with limited low-priced resources, is believed to push up tin prices this week.

 

30% of market players expect tin prices to fall back this week, noting that LME tin price may see a technical pullback following the previous surges. Coupled with the soft consumption, tin prices may confront downside risk.

 

The remaining 10% of investors believe tin prices will level off this week. These investors hold that LME tin prices will start correction this week after the continuous rises, but sharp decline is not expected given the recent positive economic reports. In domestic spot markets, most smelters are reluctant to move goods, with abating supplies expected to keep spot tin prices resistant to declines. As such, spot tin prices may remain stable at the current levels.