Tin prices pulled back slightly from highs on September 4, but the price center edged higher day on day. In terms of trading, downstream raw material purchasing interest remained weak, and end users were reluctant to place orders as prices had not reached their psychological expectations. Overall, spot market activity was subdued. On inventories, traders' tin ingot inventory in major Chinese markets stood at 9,304 tonnes as of September 4, down 532 tonnes week on week. Tin prices fell to around Yuan 410,000/tonne in the middle of last week, which lifted downstream buying interest and led to a sharp decline in tin ingot inventory. Looking ahead, macro factors are likely to continue influencing tin prices. August U.S. nonfarm payrolls significantly beat market expectations, and rising energy prices caused by persistent U.S.-Iran geopolitical tensions may strengthen near-term Fed rate-hike expectations and thus weigh on tin prices, though Trump's pressure on the Fed warrants caution. From a fundamental perspective, supply recovery has been weaker than expected, offering some support to current prices. However, after two recent rounds of price declines, downstream companies have built up some raw material inventories. Overall, prices may trade sideways in the short term.
