SHANGHAI, Dec. 20 (SMM) -- LME tin prices opened at USD 26,170/mt last Friday and closed at USD 26,100/mt, down by USD 95/mt from a day earlier, with the highest price at USD 26,240/mt and the lowest price at USD 26,050/mt. Daily trading volumes were 131 lots and positions were 20,159 lots. LME tin inventories were 15,820 mt, down by 70 mt. Cancelled warrants were 1,370 mt, accounting for 8.66% of total trading volumes. LME tin was the only product closing with losses last Friday, as the US dollar climbed at the tail of the trading.
Boosted by upbeat economic data from the US and strong equity markets, other base metal prices largely ended with gains, indicating weak correlation between the US dollar index and base metal prices. Conference Board's U S leading indicator in November was 112.4, by 1.1% MoM, a record high and the largest increase in three months.
Base metal price slip during the European trading hours is partly caused by Moody rating agency’s downgrade of Ireland rating agency from AA2 TO BAA1 as well as Moody’s cut of credit outlook of Ireland to negative. In this context, the euro was weighed and base metal market sentiment was dampened as well. Moody cut Ireland credit outlook to negative and warned Ireland that the Agency may further downgrade Ireland credit rating if Ireland fails to stabilize its debt situation in the foreseeable future.
According to latest data, holding of physical-backed ETPs increased by 75 mt to 80 mt from December 14 to 16.
Uncertainities increase with the approaching of holidays. Copper is still key factor on base metal market, while LME copper price corrections will manly caused by profit-taking and physiological accepting price from China buyers. SMM believes that LME tin prices shall continue to test whether or not support is available at USD 26,000/mt.
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