SHANGHAI, Sept. 21 (SMM) -- LME tin prices opened at USD 22,850/mt and closed at USD 22,680/mt overnight, down USD 169/mt from a day earlier, with the highest price at USD 23,200/mt and the lowest price at USD 22,540/mt. Daily trading volumes were 250 lots, down 118 lots. Positions were 18,443 lots, down 204 lots. LME tin inventories were 21,020 mt, up 5 mt from a day earlier.
LME tin prices extended weak momentum during the Asian trading hours, but advanced slightly from weak US dollar during the early European trading hours. Later, boosted by progress in European debt discussion and further expectation over stimulus policy from the Federal Reserve, LME tin price hit a high of USD 23,200/mt, but LME tin prices slipped during the evening trading hours as many players exited market and were cautious before result of Fed monetary policy meeting. LME tin prices finally closed at USD 22,680/mt, down USD 169/mt from a day earlier.
On Tuesday, market sentiment was still weighed by weak economic data from the euro zone and the US, Italian’s credit cut and IMF’s downgrade adjustment of global economic growth expectation. On the other hand, IMF said the EU will definitely provide capital support once Greece conducted self-salvation, easing market sentiment to certain extent. The US dollar was weighed, while the euro rebounded significantly. The US equity market was weak, while the European equity market rallied. The gold returned to USD 1,800/ounce again, and the crude oil surged to close nearly at USD 87/barrel. LME base metal prices largely closed with losses.
Market focus has shifted to the Federal Reserve’s monetary policy meeting, and market sentiment remained stable at present. China will announce September HSBC PMI, which will affect market movement to certain extent. SMM expects that LME tin prices will fluctuate at low price level, with support at USD 22,700/mt on Wednesday. In domestic tin spot market, supply of imported tin and low-priced tin from Jiangxi province will drag down spot tin prices to certain extent. SMM expects that LME tin prices will move in the RMB 190,500-194,500/mt range on Wednesday.