The ICDX tin price strengthened by 2.39% approaching the January close supported by the depreciating dollar and China's policy support to reopen borders and Covid-19 restrictions.
The increase in tin prices in the week was driven by a weaker dollar due to expectations that the United States Federal Reserve was less aggressive in raising interest rates. The Fed's commitment to reducing inflation spikes. The minutes of the Fed's meeting on December 13-14 showed that no policymakers expected a rate cut in 2023. Tin is traded in dollars, so a weaker dollar makes the currency feel more affordable for holders of other currencies, thus supporting tin buying. Meanwhile other positive support came from China's policies for the economy for reopening borders and removing COVID-19 restrictions.Xi Jinping has officially opened the border entrance which was previously closed in the last three years. Chinese people who are going on vacation abroad or tourists who are going to enter China can effectively leave or enter as of January 8, 2023.Sunday's end of quarantine for all arrivals marked the end of the Covid Zero policy and the long-awaited reopening of China after nearly 3 years of isolation. This is a positive catalyst for tin because it has sparked optimism to increase demand for tin from its main consumer market.
Concerns over data transparency are one of the factors prompting more than a dozen countries to demand pre-departure COVID tests from travelers arriving from China. Beijing, which has closed its borders to the rest of the world for three years and still demands all visitors be tested before their trip, has resisted the restrictions. Wu said the accusations by individual countries were "absurd, unscientific and unfounded." Tensions are running high in South Korea and Japan, with China retaliating by suspending short-term visas for their nationals. The two countries are also restricting flights, testing travelers from China on arrival, and quarantining those who are positive. Will this diplomatic tension be able to shake China's policies? If this can shake China's policies, China may return to implementing a Zero Covid-19 policy.
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Sumber: ICDX Research