SHANGHAI, Aug. 25 (SMM) -- LME tin for delivery in three months opened at USD 23,699/mt and closed at USD 23,295/mt overnight, down by USD 205/mt from a day earlier, with the highest price at USD 23,699/mt and the lowest price at USD 23,150/mt. Daily trading volumes were 185 lots, down by 78 lots. Positions were 20,273 lots, down by 193 lots from a day earlier. LME tin inventories were down by 65 mt to 22,430 mt.
On Wednesday, LME tin prices moved lower after a high open during the Asian trading hours, and fluctuated narrowly between USD 23,200-23,400/mt during the European trading hours. Finally, LME tin prices closed at USD 23,295/mt, down by USD 205/mt from a day earlier. Overnight’s better-than-expected durable goods orders from the US supported market, but still failing to offset negative impact from decline in global equity market.
The US Department of Commence announced on Wednesday that the US durable goods orders for July was up by 4.0% MoM to USD 201.45 billion, higher than previous estimation of an increase by 2.0% MoM. The data pushed Dow Jones Industrial Average to 11,293 points. However, equity market later pared early gains, and base metal prices fell in response.
Market is focusing on the Federal Reserve Chairman Ben Bernnake’s remark at Wyoming meeting, as the meeting will shed a light concerning whether or not the Federal Reserve will adopt policies to stimulate economic growth.
Market sentiment is expected to be weighed before Friday’s Fed meeting. SMM expects LME tin prices to continue to fluctuate, and will meet certain resistance at 10-day moving average. In the Shanghai tin spot market, spot tin prices have difficulties in making breakthrough owing to stagnant LME tin prices. However, tight supply of goods will support spot tin prices to certain extent. SMM expects spot tin prices will move in the RMB 193,500-195,500/mt range on Thursday.