According to the monitoring of the commodity market analysis system of Shengyi Society, the 1 # tin ingot market in East China fell this week (7.12-7.19). The average market price at the beginning of last week was 275460 yuan/ton, and the average market price at the beginning of this week was 261610 yuan/ton, a decrease of 5.03%.
The recent decline in tin prices is mainly influenced by fundamentals and macro sentiment. Recently, although the export of Indonesian tin ingots has not fully recovered, the marginal export volume has gradually increased, and the Myanmar mine has also increased due to the clearance of inventory from the beneficiation plant last month. The supply side support for tin prices has decreased. Lunxi significantly reduced its inventory at the beginning of the year, and currently its inventory has dropped to around 4000 tons, with a reduction rate of nearly 50%. Domestic inventory reached a high of 19400 tons at the end of May, and after a month of destocking, it dropped to 16100 tons in July. Domestic and international destocking provides support for tin prices.
On the demand side, semiconductor consumption is expected to improve solder material consumption this year, but currently has limited impact on overall demand. Domestic tinplate has shown some improvement driven by exports, but the accumulated inventory pressure is not small.
It is expected that the exchange will maintain a destocking status in the third quarter. The supply-demand contradiction is not severe, and it is expected to be mainly volatile in the short term.
| http://www.pva-china.net |