SHANGHAI, Sept. 29 (SMM) -- LME tin prices opened at USD 21,350/mt and closed at USD 20,500/mt overnight, down USD 1,200/mt from a day earlier, with the highest price at USD 21,800/mt and the lowest price at USD 20,5000/mt. Daily trading volumes were 320 lots, down 45 lots. Positions were 18,733 lots, up 30 lots. LME tin inventories were 21,450 mt, up 155 mt from a day earlier.
LME tin prices advanced to hit a high of USD 21,800/mt on weaker US dollar during the Asian trading hours, but prices began to fall as European debt doubt triggered a new round long position liquidation during the European trading hours. Although the US equity market advanced, European equity market closed with losses as European debt crisis still haunted market. LME tin prices closed at USD 20,500/mt, down USD 1,200/mt from a day earlier.
On Wednesday, it was denied that European Financial Stability Fund (EFSF) would be extended to Euro 2 trillion, clouding the outlook of European debt crisis and dampening market confidence to great extent. Better-than-expected economic data from the US still failed to boost market confidence. In response, equity market in the Europe and the US fell sharply, with Dow Jones Industrial Average appointing to 11,000 mark. The euro was weighed down, and the US dollar advanced significantly. Gold and crude oil fell sharply and LME base metal prices also recorded sharp losses. Ben Bernanke’s speech suggested unclear outlook of the US economy, but the speech did not hint release of any new policies. Finland approved expansion of EFSF, and market focus shifted to Germany where German parliament will vote for EFSF expansion proposal. Although Angela Merkel convinced that the proposal would be passed, market expectation was not high towards the pass of the vote. Generally speaking, market sentiment was still pessimistic.
LME tin prices opened at USD 20,000/mt on Monday, and are expected to test sustainability at USD 20,000/mt today. If LME tin prices fall below USD 20,000/mt, prices may find support at USD 19,000/mt. In domestic spot tin market, overnight LME tin price slump will dampen bullish sentiment. SMM expects that spot tin prices will be largely stable, and will move in the RMB 179,000-183,000/mt range on Thursday.