Price trend

According to the monitoring of the commodity market analysis system of SunSirs, the 1 # tin ingot market in East China has risen this month (2.1-2.28), with an average market price of 247,210 RMB/ton at the beginning of the month and 255,830 RMB/ton at the end of the month, a monthly increase of 3.49%.

Analysis review

Tin prices rose rapidly in the early stages of February, but the upward trend decreased in the later stages.

The upcoming Chinese People's Congress and Chinese People's Political Consultative Conference are expected to boost market confidence with favorable policies, and overall macro sentiment is trending towards optimism. In this context, the processing fee for tin concentrate remained low and stable, and the supply of ore was still tight, especially in the Wa region where tin ore has not yet resumed production, further exacerbating the tight supply situation, resulting in a rapid increase in tin prices to a high of 260,000 RMB/ton.

On the supply side, with the end of the Spring Festival holiday, most downstream enterprises resumed work and production one after another on the ninth day of the first lunar month. Due to Myanmar's recent official announcement of the relevant procedures for obtaining mining, beneficiation, and exploration permits, this move may further intensify the market's anticipation and fermentation of its resumption of production. ‌

On the demand side, the operating rate of downstream tin and solder enterprises was showing a steady growth trend, with a significant month on month increase. The overall demand in the consumer electronics market was gradually recovering.

At the end of the month, the domestic inventory was 7,001 tons, a decrease of 64 tons; LME inventory of 3,725 tons, slight increase in inventory provided support for tin prices slowed down.

Market outlook

Overall, the export volume of tin ingots on the exchange showed a stable growth trend in February. At the same time, the domestic market was entering a peak consumption season, and the demand for tin is expected to further increase. The subsequent tin prices are expected to maintain a volatile trend.

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