SHANGHAI, Aug. 16 (SMM)—LME tin market overnight opened at USD 24,900/mt, with the highest and lowest level of USD 24,900/mt and USD 24,350/mt, respectively. Finally, LME tin market closed at USD 24,375/mt, down USD 151/mt from a day earlier. Trading volumes were 223 lots, down by 175 lots. Positions were 20847 lots, up by 19 lots. Inventories were 22,895 mt, up 115 mt.
LME tin market overnight generally moved above USD 24,500/mt. During Asian trading hours, LME tin market was quiet, and was supported during European trading hours by a soft US dollar, Google's acquisition of Motorola, positive GDP data from Japan, and rising US equities. Finally, LME tin market closed at USD 24,375/mt after declines at the tail of trading, down USD 151/mt.
According to the data, Japan’s GDP for 2Q contracted by 1.3% at an annualized rate, less than market expectations of a drop of 2.7%. As a result, Nikkei 225 Index finished up by 1.4%.
However, the US economic data remained disappointing, with a third straight drop in New York-area manufacturing activity in August.
With prices opening at USD 24,600/mt today, LME tin prices are expected to test USD 25,000/mt due to market concerns over supply from Indonesia. Based on price movements on Monday, price resistance was available at RMB 198,000/mt. Coupled with a lower closing in the LME tin market, the rising momentum in the domestic spot markets will wane, with mainstream traded prices expected between RMB 196,000-198,000/mt.