Price Performance Indicators

• Within a week (12/12 – 16/12) the ICDX tin price strengthened by 1.09%.
• Zero Covid policy easing and negative sentiment from The Fed.

Market Review

The ICDX tin price strengthened towards the close of October and was observed moving in the range of $25,900 per ton as the easing of the zero Covid policy triggered an increase in tin prices. 

The increase in tin prices in a week was driven by the policy of the Chinese government, as the world's main metal consumer, to reopen the strict lockdown to deal with Covid-19. The steps taken by the Chinese government to support its economy have raised the demand prospects for tin. Additionally on December 9, 2022 "Tin prices have regained ground in recent days, in line with other base metals. More positive macro sentiment around China appears to be a driver, supported by a weaker dollar, with some questions around a disconnect in fundamentals," according to Jeremy Pearce in his written statement.

The negative sentiment that suppressed tin prices was due to concerns about the risk of an economic recession caused by the increase in the US Fed's interest rate next year. The Fed's comments to raise interest rates sent the dollar higher after data showed producer prices in the United States rose more than expected last month, indicating persistent inflationary pressures and stoking concerns that the Federal Reserve will need to keep interest rates higher.

Market View

China reported no new deaths from COVID-19 for Dec. 20, 2022, compared with five the previous day, but the country's deaths were revised to 5,241 after removing one death in Beijing, the National Health Commission said on Wednesday. The country reported 3,101 new symptomatic COVID infections on December 20, compared with 2,722 the previous day. Excluding imported infections, China reported 3,049 new local cases, up from 2,656 the previous day. As of December 20, mainland China has confirmed 386,276 cases with symptoms. With no deaths from Covid-19 in this new report, can it trigger the Chinese government to ease the zero Covid policy? If the Chinese government loosens it will boost China's economy again which will result in an increase in tin prices.

WEEKLY ECONOMIC DATA & EVENTS CALENDAR

Sumber: ICDX Research