SHANGHAI, Jul. 25 (SMM) -- LME tin for delivery in three months opened at USD 28,200/mt and closed at USD 28,295/mt overnight, up by USD 195/mt from a day earlier, with the highest price at USD 28,500/mt and the lowest price at USD 28,150/mt. Daily trading volumes were 161 lots, down by 96 lots. Positions were 19,306 lots, up by 295 lots from a day earlier. LME tin inventories were down by 75 mt to 21,090 mt.
LME tin prices were firm and advanced to hit a high of USD 28,500/mt during the Asian trading hours. However, LME tin prices fell to certain extent during the European trading hours, as base metal prices were weighed by weaker euro after positive impact from Greek bailout plan was absorbed. LME tin prices pared certain gains during the European trading hours, with prices finally closing at USD 28,295/mt, up by USD 195/mt from a day earlier.
Last Friday, the EU and US equity markets largely closed with gains and commodity prices rebounded due to warmed market sentiment following consensus of the Greek bailout plan, but no significant progress was reported to the US debt ceiling negotiation.
The euro fell at the tail of the trading, and the US dollar index closed with slight gains. Gold closed with gains and finally finished above USD 1,600/ournce from risk aversion buying.
May’s industrial orders announced on July 22nd from the euro zone were the highest since August 2010, significantly supporting base metal prices. Weak fundamentals in China and the US as well as shooting spree in Norway resulted in nervous sentiment in financial market, weighing on base metal market. LME tin prices are on upward track and have reported steadily overbuying. Technically speaking, LME tin prices may advance further after experiencing correction in the near term, with resistance at USD 29,000/mt and support at USD 28,000/mt. Boosted by overnight LME tin price increase, spot tin prices are expected to advance slightly to the RMB 204,500-206,000/mt range on Monday.