The movement of ICDX tin prices strengthened by 2.06% in a week to a level of 27,805 influenced by Myanmar's ban on mining activities but tin prices are likely to be limited by concerns about weak demand in China's main consumer and a stable US dollar.
concerns about tight global supplies after Myanmar, the world's third-largest producer, banned mining activities. The Wa State Central Economic Planning Committee announced that all mining and processing activities would be "stopped" from early August to preserve the state's remaining resources. Chinese tin smelters have been trying to reduce their dependence on tin ore from Myanmar.
Sentiment Negative effects on tin prices included factory activity in China unexpectedly contracting in April as falling orders and sluggish domestic demand dragged down the manufacturing sector, which uses large amounts of the metal. In addition, market concerns are deepening about the health of the US banking industry and regional bank stocks and other major financial stocks such as JPMorgan Chase and Wells Fargo have been hit. The US Fed raised interest rates by 25 basis points as expected and hinted that there would be a pause in rate hikes afterward. Powell indicated there is still a long way to go to beat inflation, and that it would not be right to cut interest rates now.
The US labor market remains resilient, with data released on May 5 showing that the US unemployment rate fell MoM in April and non-farm payrolls added 253,000 jobs. The US Fed signaled that it may stop raising interest rates at its next meeting, but will still leave room for further rate hikes later. In addition, it says that a moderately tight rate of interest has been reached, but more data is still needed to back it up.
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Source: ICDX Research