SHANGHAI, Aug. 26 (SMM) -- LME tin for delivery in three months opened at USD 23,300/mt and closed at USD 23,525/mt overnight, up by USD 230/mt from a day earlier, with the highest price at USD 23,800/mt and the lowest price at USD 23,200/mt. Daily trading volumes were 235 lots, up by 50 lots. Positions were 20,068 lots, down by 205 lots from a day earlier. LME tin inventories were up by 130 mt to 22,560 mt.
LME tin prices largely moved stably during the Asian trading hours, but advanced to hit a high of USD 23,800/mt during the European trading hours. Affected by stronger US dollar and slump in equity market, LME tin prices pared certain gains at the tail of the trading and closed at USD 23,525/mt, up by USD 230/mt from a day earlier. Based on current performance, LME tin prices met resistance at 10-day moving average.
Base metal market was not affected by 1% decline of the US equity market and stronger US dollar, and closed with gains across the board. This is mainly owing to investors’ shifted attention to Asian market and unexpected rally of heavy-weighed bank shares.
The US Department of Labor announced on Thursday, the US initial jobless claim in the week ending on August 20 surged to 417,000, higher than previous estimation of 405,000.
Market expectation and response towards Ben Bernnake’s speech will dominate market movement on Friday when Ben Bernnake will delivery important speech. If Ben Bernnake’s speech hints implementation of QE3, base metal prices are expected advance and the US dollar will weaken and liquidity in the US will increase to great extent.
LME tin prices opened at USD 23,500/mt on Friday. SMM expects LME tin prices will be guided by Ben Bernnake’s speech. As LME tin price fluctuated narrowly overnight, Shanghai spot tin prices are expected remain stable, and will fluctuate in the RMB 193,500-195,500/mt range on Friday.