DAILY: USD index decline boosts tin prices

Tin prices rose before falling on July 30. According to Mysteel, as of 15:30, the traded price of 1# tin ingot in the Shanghai market stood at Yuan 416,000–420,000/t, averaging Yuan 418,000/t, unchanged from the previous day. Smelters showed greater willingness to sell amid the recent price uptick, and some traders took delivery. Although some downstream buyers made need-based purchases when prices were relatively low, overall buying interest remained limited, causing mixed sales results among traders. Notably, as the U.S. June PCE price index fell MoM, the USD index dropped significantly, providing support to tin prices in the night session. Looking ahead, a low-level USD index is expected to underpin tin prices in the near term. Fundamentally, the temporary production halt at Yinman Mining in Inner Mongolia following an accident is likely to affect China's domestic tin ore supply going forward, thereby boosting tin prices. Meanwhile, consumption is expected to be subdued at current prices, capping the upside. Overall, tin prices are expected to fluctuate with an upward bias in the short term.