On August 7, tin prices fluctuated with a firm bias. According to Mysteel, as of 15:30, the traded price of 1# tin ingot in the Shanghai market stood at Yuan 432,000–436,000/t, averaging Yuan 434,000/t, increasing by Yuan 2,500/t. Market trading showed overall weak buying interest from downstream consumers given the elevated prices. As for inventories, tin ingot traders' inventory in China's major markets stood at 8,451 tonnes as of August 7, up 920 t WoW, with Shanghai and Guangdong recording the largest increases. On one hand, upstream producers sold actively into the high prices; on the other, downstream purchasing appetite weakened. As a result, inventory continued to build last week. Looking ahead, soft U.S. labor market data is expected to keep the USD index relatively low in the near term, which should lend support to tin prices. From a fundamental perspective, however, although raw material supply issues are still expected to underpin tin ingot prices, weak consumption and rising inventories may weigh on them. Overall, tin prices face a risk of a modest pullback in the near term.
