SHANGHAI, Sept. 16 (SMM) -- LME tin prices opened at USD 23,350/mt and closed at USD 23,480/mt overnight, up USD 130/mt from a day earlier, with the highest price at USD 23,698/mt and the lowest price at USD 23,302/mt. Daily trading volumes were 219 lots, down 45 lots. Positions were 18,410 lots, down 291 lots. LME tin inventories were 21,195 mt, down 110 mt from a day earlier.
LME tin prices largely moved stably around USD 23,500/mt overnight, and closed at USD 23,480/mt, up USD 130/mt from a day earlier. The equity markets and euro surged overnight, as the European Central Bank (ECB) said it would lend more U.S. dollars to European banks. The news boosted market confidence and will trigger optimism in the market, but LME tin market response insensitive towards the news.
On Thursday, Germany and France convinced at a teleconference that Greece will remain in the euro zone. IMF Finance Minister Christine Lagarde also stressed that Greece will not exit from the euro zone, which eased market sentiment to certain extent. During the evening trading hours, The ECB decided to provide U.S. dollar liquidity to euro-area banks in a series of three-month loans starting from Oct. 12, in coordination with the U.S. Federal Reserve, the Bank of England, Bank of Japan and the Swiss National Bank, dragging down the US dollar. In addition, economic data released from the euro zone were largely flat and will not exert negative impact on market. With improving market sentiment, equity market in the EU and US rallied, and non-US currencies rebounded. The euro versus the US dollar approached 1.4000 mark, while the US dollar slipped. Gold prices declined from mitigated risk aversion sentiment, while the crude oil continued to test USD 90/barrels. Base metal prices closed with gains across the board.
LME tin prices continued to extend weak momentum, with support at USD 23,300/mt and resistance at USD 24,000/mt. SMM expects that LME tin prices will be hard to make significant breakthrough, and will continue to fluctuate weakly. In the Shanghai tin spot market, prices will largely remain stable between RMB 191,500-195,500/mt on Friday.