SHANGHAI, Sept. 7 (SMM) -- LME tin prices opened at USD 23,900/mt and closed at USD 23,945/mt overnight, up USD 40/mt from a day earlier, with the highest price at USD 24,020/mt and the lowest price at USD 23,601/mt. Daily trading volumes were 220 lots, up 30 lots. Positions were 18,870 lots, down 264 lots. LME tin inventories were 21,950 mt, down 90 mt from a day earlier.
Concern over the European debt crisis dominated market again. LME tin prices fluctuated widely overnight, weighed below USD 24,000/mt but finding support at 20-day moving average. During the Asian trading hours, LME tin prices initially slipped but later rallied. During the European trading hours, affected by market worries, LME tin prices fell to USD 23,601/mt. Finally, LME tin prices closed at USD 23,945mt, up USD 40/mt from a day earlier.
Market concern over European debt crisis outlook further exacerbated along with rumor that Greece will exit from the euro zone, Germany's chancellor Angela Merkel’s fail to win election and Italian government’s change of nation's austerity scale. In response, the US equity market opened 2% lower on Tuesday. Risk aversion sentiment continued to slightly weigh down on euro, while the US dollar rebounded for six consecutive days, with the US dollar closing above 76. NYNEX crude oil futures price closed with slightly gains, while London spot gold closed with slightly losses.
SMM expects that LME tin prices will continue to move around USD 24,000/mt and will continue to fluctuate on Wednesday. In the Shanghai tin spot market, weak momentum of LME tin price will weigh on spot tin prices. Coupled with impact of imported tin, demand for spot tin will be sluggish. SMM expects that spot tin prices will move in the RMB 195,000-196,500/mt range on Wednesday.