SHANGHAI, Aug. 24 (SMM) -- LME tin for delivery in three months opened at USD 23,050/mt and closed at USD 23,500/mt overnight, up by USD 850/mt from a day earlier, with the highest price at USD 23,695/mt and the lowest price at USD 22,995/mt. Daily trading volumes were 263 lots, up by 49 lots. Positions were 20,466 lots, up by 243 lots from a day earlier. LME tin inventories were down by 685 mt to 22,495 mt.
LME tin prices largely moved stably during the Asian trading hours, but advanced to hit a high of USD 23,695/mt during the European trading hours on weaker US dollar. Finally, LME tin prices closed at USD 23,500/mt, up by USD 850/mt from a day earlier. China’s PMI for August released by HSBC was better than expectation, supporting trading during the Asian trading hours. Although economic data released from the euro zone and the US were largely weaker than expectation, weaker US dollar still lent support for LME tin prices and rally in the US equity market also boosted LME tin prices.
HSBC released that China's initial PMI for August slightly improves after deteriorating for three consecutive months. The euro zone manufacturing data and the US new housing sales fell to a 5-month low, suggesting that sluggish economic growth in developed economies continues.
Investors are waiting for any clue for economic stimulation on Fed's meeting to be held on Friday.
Moody’s announced to cut Japan’s government rating to Aa3. The downgrade was prompted by large budget deficits and the build-up in Japanese government debt since the 2009 global recession.
LME tin prices opened at USD 23,699/mt on Wednesday. Japan’s government rating cut may temporarily weigh on LME tin market, as Japan is a major consumer of tin. SMM expects that LME tin prices will remain fluctuation trend and will test resistance at USD 24,000/mt on Wednesday. In the Shanghai tin spot market, overnight LME tin price rally will boost spot tin market, but sluggish spot consumption will restrict prices to advance further. SMM expects spot tin prices will be largely stable and will move in the RMB 193,000-195,500/mt range on Wednesday.