SHANGHAI, Sept. 28 (SMM) -- LME tin prices opened at USD 20,200/mt and closed at USD 21,700/mt overnight, up USD 1,500/mt from a day earlier, with the highest price at USD 21,700/mt and the lowest price at USD 20,2000/mt. Daily trading volumes were 365 lots, down 332 lots. Positions were 18,703 lots, up 203 lots. LME tin inventories were 21,295 mt, down 110 mt from a day earlier.
LME tin prices were boosted and began to rebound overnight, due to stronger euro versus the US dollar following cautiously optimistic expectation that policy makers would make joint efforts to cope with European debt crisis and on the news that Indonesia, a major tin producer, would fully prohibit exports of tin. During the evening trading hours, upward momentum of LME tin prices waned to certain extent, and LME tin prices fluctuated narrowly around USD 21,500/mt. Finally, LME tin prices closed at USD 21,700/mt, up 7.4% from a day earlier.
On Tuesday, market sentiment was boosted on the news that European Financial Stability Fund (EFSF) bailout fund would be extended and European policy makers reached a consensus on new debt solution plan. In response, the euro advanced and the US dollar slipped. Gold pared losses recorded in a day earlier, and crude oil advanced by over 5%. LME base metal prices rallied across the board. Except LME aluminum, other LME metals all rallied by over 4%.
Supported by Indonesia’s tin export ban, LME tin prices broke through resistance level of USD 21,000/mt and will advance to test USD 22,000/mt today. However, contractions in trading volumes suggested cautious sentiment, so LME tin prices may continue to test sustainability at USD 21,000/mt. In the Shanghai tin spot market, rebounding LME tin price and limited supply of goods in spot market will support spot tin prices. SMM expects that LME tin prices will move in the RMB 180,000-184,000/mt rang on Wednesday.