SunSirs: Non-ferrous Metals Tin has a ‘M’ Trend this Week (December 9-13)

1. Price trend

Domestic 1# tin ingot has a ‘m’ trend this week (December 9-13). The average price at the beginning of the week was 139,062.5RMB/ton, and at the end of the week was 140,037.50RMB/ton, up 0.7%.

On December 13, the tin commodity index was 71.33, down 0.41 points from yesterday, 28.85% lower than the highest point in the cycle, 100.25 (September 5, 2011), and 66.43% higher than the lowest point, 42.86, on December 9, 2015. (Note: cycle refers to September 1, 2011to now).

2. Market trend analysis

Domestic market: this week's futures market SND fell back, Monday and Tuesday continued last week's strong, Wednesday into the high oscillation trend. The main trend of SN this week is from 2001 contract to 2005 contract. Overall, the trend is weak. Driven by the futures market, the spot market rose at the beginning of the week and fell at the end of the week. In terms of transportation and investment, due to the high price, the transportation and investment are limited, but the market heat is rising. The procurement is mainly rigid demand procurement. As of Friday, the mainstream price of spot tin market was 138,500-141,000RMB/ton.

Nonferrous Industry: leading by the strong breakthrough of copper, the basic metals have stepped out of the low-lying area and kept rising. At the beginning of the week, the market continued the positive sentiment brought by the non-agricultural data on Friday. The announcement of the Federal Reserve's interest rate meeting held confidence in the future economic development and long positions increased into the market. After the week, the European Central Bank's interest rate meeting stated that the loose policy is still the same, and the Conservative Party of the British general election is set. Next May, the brexit is expected to be completed, the pound soared, the US dollar fell below the 97 point mark, and the base metal soared again. The market expects that the US will postpone the imposition of trade tariffs on China's imported goods. The trade disputes between the two countries may be eased, and the US dollar continues to weaken, which has boosted the strength of the metal market.

3. Future prospects

PMI data of various countries will be released next week. The market is expected to recover. The U.S. stock market has set a record high continuously. The U.S. dollar is low and volatile. The macro environment is still optimistic. All basic metals have got rid of the previous low range this week. Under the short market, there is still momentum to continue to rise. The spot is also the last time window for the closing of the last long single transaction of this year It will maintain a strong price trend, so it is easier for the two cities to show a strong trend in the basic metal period.

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