SHANGHAI, Sept. 6 (SMM) -- LME tin prices opened at USD 24,222/mt and closed at USD 23,905/mt overnight, down by USD 197/mt from a day earlier, with the highest price at USD 24,300/mt and the lowest price at USD 23,820/mt. Daily trading volumes were 220 lots, up 30 lots. Positions were 19,134 lots, up 308 lots. LME tin inventories were 21,995 mt, down 435 mt from a day earlier.
Concern over global economic growth reduced investors’ risk appetite in the base metal and equity markets. Overnight, LME tin prices slipped all the way after advancing slightly to USD 24,300/mt during the morning Asian trading hours. During the European trading hours, LME tin prices still failed to pare losses and fluctuated weakly to hit a low of USD 23,820/mt. Finally, LME tin prices closed at USD 23,905/mt, down by USD 197/mt from a day earlier.
August's PMI for service sector announced on Monday from China, euro zone members and the UK were generally sluggish. The concern over global economic recovery outlook triggered equity slumps both in Asian and European markets. Political turbulence in Germany, coupled with Moody’s possible cut of Italian sovereign credit rating, intensified investors’ concern over the European debt issue. In response, growing risk aversion sentiment weighed down the euro, while the US dollar advanced above 75. Spot gold closed with mild gains, and NYMEX crude oil for delivery in October was down by 2.84%.
Affected by pessimistic sentiment due to weak economic performance in the euro zone and US, LME tin prices are expected to extend weak momentum and may slip further. SMM expects that LME tin prices will largely fluctuate around USD 24,000/mt on Tuesday. In the Shanghai tin spot market, overnight's LME tin price decline may drag down spot tin prices, and SMM expects that spot tin prices may fall further to move in the RMB 195,500-197,000/mt range on Tuesday.