SHANGHAI, Aug. 10 (SMM) -- LME tin for delivery in three months opened at USD 22,490/mt and closed at USD 22,751/mt overnight, up by USD 1/mt from a day earlier, with the highest price at USD 23,400/mt and the lowest price at USD 21,800/mt. Daily trading volumes were 699 lots, up by 79 lots. Positions were 20,303 lots, up by 33 lots from a day earlier. LME tin inventories were 22,600 mt, unchanged from a day earlier.
LME tin prices extend downward momentum and fell to USD 21,800/mt during the early Asian trading hours. China’s CPI for July hit a three-year high, but market responded insensitively. During the European trading hours, market sentiment improved, as market expected the Federal Reserve would adopt measure to support economic growth. In response, equity market rebounded, boosting base metal markets. LME tin prices advanced and hit a high of USD 23,400/mt later, with prices closing almost flat from a day earlier.
The US equity markets rebounded significant on Tuesday, with Dow Jones Industrial Average Index settling at 11,239.77 points, up by 3.98% from a day earlier. The Federal Reserve announced to keep interest rate unchanged between 0-0.25% for at least two years to 2013, indicating possibility of a new round quantitative easing policy. In this context, equity in major European economies advanced slightly. New York crude oil futures price lost 2.5% to close at USD 79.30/barrel, while gold prices advanced by USD 29.80/ournce to finish at USD 1,743/ounce.
LME tin prices opened high at USD 23,200/mt on Wednesday. Supported by improved economic news and a need for technically rebound, SMM expects LME tin pries will advance but will meet resistance at 5-day moving average on Wednesday. As LME tin prices stabilized overnight, Shanghai spot tin prices are expected to move in the RMB 190,000-193,000/mt range on Wednesday.