This week (8.05-8.09) the domestic 1_tin ingot market shocks higher, the domestic market average price at the beginning of the week at 134912.50 yuan/ton, weekend at 13632.50 yuan/ton, up 1.07%.
On August 9, the tin commodity index was 69.46, down 0.49 points from yesterday, down 30.71% from the peak of 100.25 points in the cycle (2011-09-05), and up 62.06% from the low of 42.86 points on December 09, 2015. (Note: Period refers to 2011-09-01 to date).
II. Market Trend Analysis
Domestic market: This week, the domestic spot tin market shocks higher, as of Friday, the mainstream domestic spot tin prices in 135500-137000 yuan/ton, up about 1500 yuan/ton from the beginning of the week, an increase of 1.07%. From Monday to Wednesday, the spot tin market fluctuated at 135,000 yuan/ton. The market did not perform well and tended to be stable. Since Thursday, boosted by a sharp rise in the futures market, traders actively replenish their goods, the market has a better trading atmosphere, and prices have also risen. On Friday, the market returned to rationality, purchasing was soft and trading was light. Up to Friday, the Shanghai area suit brand Yunxi lifting water 800-1200 yuan/ton, ordinary Yunzi lifting water 500-1000 yuan/ton, small brand lifting water 200-500 yuan/ton.
Non-ferrous industry: This week, the performance of basic metals first restrained and then increased. The offshore renminbi “unexpectedly” broke seven, while the US Treasury Department classified China as a currency manipulator. China-US relations deteriorated further. Subjects such as stock markets and bonds in the global financial system suffered a systematic slump. Gold continued to soar. Commodities fell sharply at the beginning of the week. Then, when the US dollar fell, the market panicked. Emotions gradually recovered, commodities showed a low rebound, repair the upward trend, most of the weekend recovered some of the early week’s decline.
3. Prospects for the Future Market
Next week’s economic data in Europe and the United States are still relatively concentrated, and worries in the macro environment are not recovering. This week’s low rebound has lifted most metals out of the trough. However, the sustained rebound still needs the promotion of each metal’s own fundamentals and the degree of favor of funds. We should be alert to the gradual withdrawal of large-scale capital into the market in the next week. Tin prices are expected to remain volatile.