SHANGHAI, Sept. 8 (SMM) -- LME tin prices opened at USD 23,850/mt and closed at USD 24,400/mt overnight, up USD 455/mt from a day earlier, with the highest price at USD 24,450/mt and the lowest price at USD 23,785/mt. Daily trading volumes were 328 lots, up 57 lots. Positions were 18,861 lots, down 9 lots. LME tin inventories were 21,755 mt, down 150 mt from a day earlier.
Wednesday's economic data were positive. Market sentiment improved and equity market rebounded after Italy passed austerity plan. Boosted by improved risk appetite and weaker US dollar, LME tin prices advanced and hit a high of USD 24,450/mt overnight. Finally, LME tin prices closed at USD 24,400/mt, up USD 455/mt, breakthrough resistance at 5-day moving average and arriving below 30-day moving average.
On Wednesday, according to some reports, President Obama plans to propose sparking job growth by injecting more than 300 billion dollars into the economy next year. In other news, German court tossed out lawsuits aimed at blocking the country's participation in helping Greece and other euro zone countries, improving risk appetite to great extent. In addition, factory orders in Germany were significantly higher than market expectation, also boosting market sentiment. Equity markets rallied both in the European market and US market, with three major stock indexes exceeding more than 3%. Euro advanced, while the US dollar was weighed. Gold slumped from improved risk appetite, while crude oil prices rallied. LME base metal prices closed with gains across the board.
LME tin prices have broken through resistance, and are expected to advance further, with current target at USD 25,000/mt. In the Shanghai tin spot market, boosted by overnight LME tin price rally, spot tin prices may cease slipping. SMM expects that spot tin prices will move in the RMB 195,000-197,000/mt range on Thursday.