SHANGHAI, Jul. 27 (SMM) -- LME tin for delivery in three months opened at USD 28,200/mt and closed at USD 28,460/mt overnight, up by USD 309/mt from a day earlier, with the highest price at USD 28,625/mt and the lowest price at USD 28,200/mt. Daily trading volumes were 336 lots, up by 240 lots. Positions were 19,083 lots, up by 201 lots from a day earlier. LME tin inventories were down by 105 mt to 20,990 mt.
LME tin prices advanced all the way on Tuesday, which was mainly due to decline in the US dollar. No progress was made on the US debt ceiling, which weighed on the US dollar. LME tin prices extended upward momentum and hit a two-month high, with prices finally closing at USD 28,460/mt, up by USD 309/mt from a day earlier.
The US dollar fell against major currencies, hitting a historical low versus the Swiss Franc and a three-week low against euro. As the two political parties still failed to make progress on debt ceiling, the risk of U.S. government debt default is mounting and the AAA credit of the US may be cut down.
Upward momentum of LME tin prices remains strong, and LME tin prices are expected to advance further to point USD 29,000/mt, with current support at USD 28,000/mt. In the Shanghai tin spot market, as supply of low-priced goods is reducing, spot prices will advance slightly. However, soft consumption will restrict prices from rising further. SMM expects spot tin prices will move in the RMB 205,500-207,000/mt range in Wednesday.