Tin market summary Mar 3-7

Supported by softening US dollar, the bullish movement of oil and precious metals and the strong speculative buying from funds, tin market strengthens further and broke through USD19,000/t on LME during the week. In the sight of the blooming tin market on LME, Chinese participants are also optimistic about the outlook of tin market in the near term, setting the next target at RMB160,000/t in the coming weeks.
3-month tin has been on the record-striking road on LME since last week, and it rose further to hit new highs early this week. With the US dollar weakening, people put more money into commodity market, promoting metal prices rising strongly. Following the bullish movement last week, 3-month tin rose strongly from USD18,750/t last Friday to USD18,950/t this Monday and up further to USD19,050/t and hit all-time high of USD19,375/t on Tuesday. Supported by the strong sentiment among participants, the concerns on tin supply in China and Indonesia, the first two largest producers and the sinking tin inventory in the warehouses of LME, 3-month tin crept up to USD19,250/t on Wednesday. It retreated slightly to USD19,150/t on Thursday, though it ever hovered at the high level of around USD19,350/t early Thursday. The metal still kept stable at USD19,150/t on Friday.
However, most participants do not think that the bullish market will come to an end in the near term. They predicted that 3-month tin will reach the target of USD20,000/t on LME soon, as the tightness of tin ingot supply from Indonesia has not been eased completely. Though the demand from consumers slows down on the rocketing prices, it has not been strong enough to cool down the current bullish market so far.