On Wednesday, tin futures price declined in Shanghai Futures Exchange amid weak demand. Other base metals also plunged as power supply resumed in China’s Sichuan province.
On Monday, SHFE tin dropped below the mid-end of the Bollinger Bands and ended lower by 2.67% on Tuesday. Likewise, the contract on the London Metal Exchange tumbled by 1.96%.
In the previous session, the average spot price of SMM1# tin slid by 1.26% to ¥196,500.00 per metric ton.
The decline came as smelters in the spot market lowered their offers due to tumbling futures costs.
Also, trades in the spot industry were thin caused by tight supply and downstream firms are only purchasing as needed.
According to the analysts, the orders of downstream solder enterprises did not significantly increase in August compared with July.
Further more, tin foil businesses restocked due to the metal’s low prices alongside an anticipation of better consumption in this year’s second half.
In terms of supply, most smelters resumed normal production and the import window has been open this month. This could lead to a rise in the import of tin ingots, alleviating domestic shortage.
An analyst stated that the improved trades in the spot market caused the local tin inventory under SHFE warrants to sharply drop.
Shanghai base metals tumbled
Moreover, the price of most base metals in Shanghai declined on August 31 as supply concerns eased following the power resumption in Sichuan province.
This week, China’s southwestern region resumed its power supply to industrial and residential usage. Thus, factories restarted their metal production after being ordered to shut down on August 15.
The most-traded October copper futures in the Shanghai Futures Exchange plunged by 0.60% to ¥62,030.00 per ton.
In addition, SHFE aluminum contract declined by 1.20% to ¥18,320.00 a ton. Besides, zinc fell by 0.10% to ¥24,900.00 a ton.
