Tin Price Dropped To Lowest Level Of 2019 - icdx.co.id
  • In a week (06/05 – 10/05) the price of ICDX’s Tin dropped down 0.56%.
  • Price range between US$ 19,365 - US$ 19,420
  • Highest volatility reached 0.53%.

Market Review

ICDX's tin price settled at their lowest levels of the year on Friday (10/5), weighed down as the worries over the outlook for global growth in the face of the US-China trade dispute, support with the uncertainty of regulatory in Indonesia added pressure to Indonesia tin market.

The China Passenger Car Association (CPCA) released report on Thu (9/5) showed that China's wholesale and retail of passenger vehicles in April continued to shrink from a year earlier. Retail sales of passenger cars averaged 44,275 units per day in April, down 18% year on year. Tin is major used as solder in automative industry, downward of vehicle demand surely not a good news for tin market.

China’s Ministry of Ecology and Environment said on Thu (9/5) that they will send teams of officials to 25 provinces and cities, this round of inspection will target treatment of polluted water, protection of water resources, regulations over solid wastes, crackdown on imported wastes, regulations over phosphor mines and processing factories along the Yangtze River and chemical enterprises. Some of the tin smelters will be closed during the inspection, it will impact the domesctic supply and expect to lift up tin price in the short term.

Timah Weekly Chart 190510 - icdx.co.id

Price Performance Indicators

Previous Week % Change
ICDX $ 19,365.00 -0.56%
LME $ 19,650.00 +1.42%
KLTM $ 19,240.00 -0.82%
SHFE ¥ 145,910.00 -1.47%
USD/IDR Rp 14,347.00 +0.46%

Market View

LME Intend to Open Warehouse in China

LME are in talks with the officials in the Guangdong province of China to open a new warehouse, said the sources at LME Asia Week in Hong Kong. Currently, LME warehouses in Asia are located in Taiwan, South Korea and Singapore. Quotes from International Tin Association (ITA), by having LME warehouse in China, traders could maintain their profit margin at a lower arbitrage – assuming warehousing costs less than exporting. Currently, Chinese tin traders must wait for the arbitrage between the London- and Shanghai-based exchanges to become large enough to cover export charges and VAT.

HKEX New 6 Base Metal Mini Contracts

Hong Kong Futures Exchange (HKEX) plans to launch dollar-denominated mini contracts for six base metals in the coming months, the LME head of market development, Robin Martin, said on Mon (6/5). The mini contracts are smaller than the LME contracts, with copper, aluminium, zinc and lead in five tonne lots and tin and nickel both in one tonne lots. HKEX already has mini contracts traded in China's yuan currency. The new contracts are undergoing regulatory approval, Martin said. The new offering comes 5 years after a similar product launced on the Singapore Exchange (SGX) in 2011, and delist at 2014 after they failed to gain interest in the market, due to no support from LME members.

WEEKLY ECONOMIC DATA & EVENTS CALENDAR

Date Data/Events Actual Expectation Previous
13/May Japan - Preliminary Leading Economic Index (Mar) 96.3 97.3 97.1
14/May Uni Europa - Industrial Production YoY (Mar) -2.1% -0.3%
14/May Uni Europa - Industrial Production MoM (Mar) 0.0% -0.2%
14/May Uni Europa - ZEW Survey Economic Sentiment (May) 97.4 97.4
15/May China - Industrial Production YoY (Apr) 6.5% 8.5%
15/May China - Retail Sales YoY (Apr) 8.6% 8.7%
15/May Japan - Preliminary Machine Tool Orders YoY (Apr) -28.5%
16/May China - House Price Index (Apr) 10.6%
17/May Japan - Tertiary Industry Index MoM (Apr) -0.4% -0.6%

Source: ICDX Research




ICDX MEMBER