On August 19, tin prices fluctuated in a narrow range and edged lower. In market trading, after two consecutive days of declines, downstream purchasing interest improved further, with deals concentrated at Yuan 417,000-420,000/tonne. Although some downstream buyers failed to transact due to low bid prices, and some slowed purchases after buying heavily the day before, overall spot trading volumes remained decent. On the macro side, the U.S. Treasury's announcement of expanded buybacks of long-term bonds pulled Treasury yields lower; the market sees the operation-supporting buybacks through new debt issuance-as essentially injecting dollar liquidity into the market. Meanwhile, although FOMC minutes showed some Fed officials supported rate hikes, the market widely expects no further hike before December. As a result, the USD index fell below 99, offering support to tin prices. In the short term, with a weaker U.S. dollar and no significant change in fundamentals, tin prices are expected to fluctuate with an upward bias.
