PRICE INDICATOR

Focus:

1. Within a week (21/8-25/8) the ICDX tin price strengthened by 1.04%.
2. PBoC interest rates are down

ICDX tin price movement strengthened by 1.04% in a week to a level of 28,715 which was influenced by the interest rate cut by the Central Bank of China with the aim to help homebuyers, including lowering mortgage rates for first-time homebuyers and down-payment ratios. China's Central Bank cuts interest rates moderately. China announced an unexpected move by slashing the one-year lending rate by 10 basis points to 3.45%, but keeping the five-year rate unchanged at 4.20% so far this year and becoming one of Asia's worst performing currencies. In addition, there are wider concerns about the currency's rapidly weakening yuan. Based on observations, the yuan has lost nearly 6% against the US dollar so far this year and is one of the worst performing Asian currencies. The Central Bank's move at the same time triggered market disappointment that hoped for a more aggressive stimulus to restore the economy of one of the world's first largest tin importing countries.

Market View

China's Economic Optimism

China's manufacturing activity unexpectedly expanded in August suggesting that official efforts to revive growth may provide some optimism about the economic health of the world's largest tin importer. The Caixin manufacturing purchasing managers' index (PMI) rose to 51.0 in August from 49.2 in July, beating forecasts of 49.3 and marking the highest reading since February.China's official NBS Manufacturing PMI for August rose to 49.7 versus expectations of 49.4 and the previous reading of 49.3. However, the Non-Manufacturing PMI was 51.0 compared to the previous reading of 51.5 and the market forecast of 51.1. In addition, in the previous week, a series of economic support measures announced by China, such as lowering interest rates and easing lending rules for home buyers, have also supported the country's economy. 

From Indonesia's export side, The Central Statistics Agency (BPS) for the Bangka Belitung Islands (Babel) Province stated the value tin export and non tin from January to July 2023 it reached US$1,181.36 million, or an increase of 58.81 percent compared to the same period the previous year of US$1,721.00 million. Tin from the Babel Islands Province is mostly exported to countries in Asia, and China is still the main destination country. During January-July 2023, as much as 31.39 percent of tin exports were sent to this Bamboo Curtain country.

WEEKLY ECONOMIC DATA & EVENTS CALENDAR

Source : ICDX Research