SHANGHAI, Sept. 26 (SMM) -- LME tin prices opened at USD 19,550/mt and closed at USD 19,310/mt overnight, down USD 290/mt from a day earlier, with the highest price at USD 20,297/mt and the lowest price at USD 17,000/mt. Daily trading volumes were 826 lots, down 499 lots. Positions were 18,133 lots, up 748 lots. LME tin inventories were 21,315 mt, up 150 mt from a day earlier.
As investors’ panic sentiment continued to dominate market last Friday, LME tin prices slipped to USD 17,000/mt last Friday, the lowest since July 2010. However, affected by dip-buying, LME tin pries later pared early losses, and closed at USD 19,310/mt, down USD 290/mt from a day earlier.
Market still lacked solid news last Friday, and was still affected by investors’ concern over global economy. However, equity and exchange markets eased to certain extent last Friday, with equity market in the US and Europe both closing with slight gains. Gold slumped by 4.75% to USD 1,656.81/ounce, and crude oil prices also slipped. LME base metal prices largely extended previous downward momentum, with significant losses reported. Despite of positive attitude, G20 summit did not achieve significant result. Moody’s cut credit rating of Bank of Greece. It is expected that market concern will continue to haunt market amid sluggish global economy and absence of solid economic news, but dip-buying will slightly support prices to certain extent.
Although LME tin prices rebounded from technical support last Friday, panic sentiment remained in the market. Coupled with approach of Greek 2012 budget deadline, it is expected that risk aversion sentiment will grow, and LME tin prices face downward pressure, with current support at USD 180,000/mt. In China’s domestic tin spot market, weak LME tin prices will drag down spot tin prices. SMM expects that spot tin prices will move in the RMB 178,000-185,000/mt range on Monday.