On May 7, China's tin prices extended gains. Easing US-Iran tensions lifted risk appetite. Falling oil prices eased inflation concerns, prompting markets to scale back expectations of prolonged tight policy from the Fed and other major central banks. The yen surged against the dollar recently. As the second-largest weight in the dollar index, the yen's sharp appreciation directly weighed on the index. In summary, macro factors were bearish for the dollar, supporting tin prices. On fundamentals, elevated tin prices dampened downstream buying interest, leaving spot trading sluggish. Meanwhile, Wa State's suspension of all chemical and explosives plants for rectification could disrupt explosives supply to mines, fuelling raw material supply concerns. Overall, tin prices rose under the combined influence of macro and fundamental drivers. Looking ahead, a relatively low dollar index and raw material supply concerns should keep tin prices oscillating at elevated levels.
