This week, the 1 # tin ingot market in East China fell, with an average market price of 373590 yuan/ton on October 30th and 385370 yuan/ton as of October 26th, a decrease of 3.06%.
Presenting a significant ‘roller coaster’ market trend. In the first half of the week, it steadily rose and reached its weekly high on October 28th. However, the bulls were unable to hold their ground, and the market took a sharp downturn on Thursday and Friday. On October 30th, there was a cliff like decline, with a sharp weekly amplitude and a single day drop of about 3.48%.
Fundamental analysis:
On the supply side, the market’s expectation for the recovery of overseas tin ore supply (such as the Wa State in Myanmar and other major producing areas) has always been a hanging “sword of Damocles”, and the support on the raw material side is gradually loosening.
On the demand side: Downstream electronics and solder companies generally have a “fear of high prices” attitude towards high priced tin ingots, mainly focusing on rigid procurement, making it difficult to provide sustained demand growth. In a pattern of strong supply and weak demand or weak supply and demand, prices are highly susceptible to significant fluctuations due to macroeconomic sentiment or financial disturbances.
comprehensive analysis
Overall, the current tin price technology is breaking through, and the fundamentals lack substantial bullish drivers. It is expected that tin prices will maintain a weak and volatile bottoming trend next week. Investors are advised to pay attention to the effectiveness of the support level of 370000 yuan/ton, and downstream enterprises can replenish their inventory as needed at low prices.
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