SHANGHAI, Aug. 11 (SMM) -- LME tin for delivery in three months opened at USD 23,200/mt and closed at USD 22,995/mt overnight, up by USD 244/mt from a day earlier, with the highest price at USD 24,100/mt and the lowest price at USD 22,650/mt. Daily trading volumes were 835 lots, up by 136 lots. Positions were 20,563 lots, up by 260 lots from a day earlier. LME tin inventories were down by 20 mt to 22,580 mt.
During the Asian trading hours, LME tin prices were largely stable. During the early European trading hours, LME tin prices were boosted to hit a high of USD 24,100/mt due to improved economic news. However, during the late European trading hours, LME tin prices fell from high due to revived European debt crisis and decline in the US dollar. Finally, LME tin prices closed at USD 22,995/mt, up by USD 244/mt from a day earlier.
The US equity markets slumped on Wednesday, due to concern over possible down grade of France’s triple-A credit rating, with equity in the banking sector leading the decline. In addition, the US Federal Reserves’ pessimistic expectation over economic outlook dampened investors’ confidence. The Dow Jones Industrial Average Index closed at 10719.94 points, down by 519.83 points or down by 4.62% from a day earlier. Gold prices hit USD 1,800/oz on Wednesday.
LME tin prices opened low at USD 22,700/mt on Thursday, showing downward trend. Recent uncertainties over the European debt and US economy made financial markets fluctuate wider. SMM expected LME tin prices will be weighed, and will find support at USD 22,000/mt on Thursday. Although LME tin prices closed with gains overnight, the low open of LME tin prices suggested that prices haven’t stabilized. Dampened by quiet consumption in spot market, SMM expects, Shanghai tin spot prices will remain stable and will move in the RMB 190,000-193,000/mt range on Thursday.