SHANGHAI, Jul. 15 (SMM) -- LME tin for delivery in three months opened at USD 27,250/mt and closed at USD 27,350/mt overnight, up by USD 100/mt from a day earlier, with the highest price at USD 27,475/mt and the lowest price at USD 27,000/mt. Daily trading volumes were 158 lots, down by 241 lots. Positions were 19,075 lots, down by 118 lots from a day earlier. LME tin inventories were down by 25 mt to 20,925 mt.
During the earlier trading hours, data from the US showed that the US retail sales were up, while producer price index and initial jobless claim were down, lending support for base metals. However, the US Federal Reserve chairman Ben Bernake reiterated that the Federal Reserve has no plan to launch the QE3 when he attended Senate hearing, which boosted the US dollar and weighed down on base metal prices to close with losses
LME tin prices largely hovered at high level overnight, with prices mainly moving between USD 27,000-27,400/mt. Although Bernake’s statement dragged down base metal prices, LME tin prices were limitedly affected and only slipped slightly, with prices closing at USD 27,350/mt, up by USD 100/mt from a day earlier.
Moody's warned possible downgrade of the US AAA credit rating, further weakening market sentiment.
According to an Indonesian news paper, Timah, the largest tin producer in the world, expects that decline in tin sales, lending support for tin prices.
The lingering European debt crisis and concern over the US economic recovery continued to dampen market sentiment. Combined with uncertainties over macro economy, SMM expects base metal prices will continue to be volatile. At present, LME tin prices continue to test support at 5-day moving average, meeting resistance between USD 27,500-27,800/mt and finding support at USD 26,000/mt. SMM expected that Shanghai tin spot prices are expected to advance slightly to the RMB 201,500-203,000/mt range on Friday.