Tin prices continue to go down

BEIJING (Asian Metal) 3 Dec 13 – Tin prices in China kept falling on the dim demand, and the trading remained thin. However, most participants believe that there would be little room for tin prices to go down further

A producer in Yunnan with the output of around 400-500tpm offered tin ingot at RMB143,000/t (USD23,328/t) ex works this Monday, down by about RMB500/t (USD82/t) compared with that last Friday. “Traders give lower prices, and it is hard for us to conclude deals,” said the source, adding that most producers suffer great losses, and major ones still hold back from selling.

The source said that tin futures on the LME fluctuate at USD22,500-23,000/t, and tin inventory is on the decline. In addition, the current tin prices drop below the production cost, and more producers would reduce or even suspend production if the price continues to decline. “I think tin prices in China may consolidate at RMB140,000/t (USD22,838/t) in the near term,” said the source.

A trader in Shanghai with the sales volume of around 500tpm sold 50t of tin ingot with YT brand at RMB144,000/t (USD23,491/t) this Monday, down from RMB144,500/t (USD23,573/t) on Monday. “Yunnan Tin reduces our supplies from 600tpm to 300-400tpm, and we hold few stocks on hand,” said the source, revealing that major producers still insist on high offers and are reluctant to lower offers further.

The source said that some small-sized producers even sell tin ingot at RMB140,500/t (USD22,920/t), and the supply is abundant. “Tin prices may move down, but the downside may be limited, since major producers reduce the sales volume,” said the source.
.Asian Metal Copyright “Traders give lower prices, and it is hard for us to conclude deals,” said the source, adding that most producers suffer great losses, and major ones still hold back from sellingAsian Metal Copyright