Price Perform Indicator

Focus:

1. Within a week (24/7-28/7) the ICDX tin price strengthened by 3.23%.
2. The Fed's interest rate increased 25 bps

Market Reviews

The movement of ICDX tin prices strengthened by 3.23% in a week to a level of 30,050 influenced by China's steps to increase economic policy support with a focus on increasing domestic demand. But the increase in world tin prices amid the threat of rising interest rates. The Federal Reserve is raising interest rates by 25 basis points on schedule. Fed Chair Powell said at a subsequent news conference that inflation in the United States remains high. The hike raised the target range for the benchmark interest rate overnight to 5.25-5.50%, and the accompanying policy statement left the door open for another hike. The increase in interest rates was in accordance with market estimates so that prices strengthened. On the negative side, tin prices fell due to macroeconomic sentiment following the release of US data which boosted the US dollar index. The market has positive expectations for refined tin consumption in the third quarter, but downstream consumption has recently been in an off-peak period. High tin prices have hampered downstream procurement enthusiasm, and refined tin inventories at home and abroad are expected to increase slightly this week. Tin prices were affected by the successive increases in interest rates in Europe and the US in July, in line with market expectations.

Market View

The movement of tin prices was also influenced by world macroeconomic factors, such as official manufacturing PMI data in China and Chicago PMI data in the United States on July 31. From a fundamental point of view, since the end of July, several domestic tin smelters have resumed operations, and production has just been expanded. US annual inflation registered its smallest increase in more than two years in June, raising hopes that the Fed is close to ending its rate-hike cycle, potentially halting a dollar rally that has made the greenback-priced metal more expensive for holders of other currencies. The Nasdaq in its report the US dollar headed for a monthly loss. Promises from Chinese authorities to boost the country's troubled property sector also fueled bullish sentiment in the metals market.

WEEKLY ECONOMIC DATA & EVENTS CALENDAR

Source: ICDX Research