SHANGHAI, Oct. 12 (SMM) -- LME tin prices opened at USD 23,100/mt and closed at USD 22,395/mt overnight, down USD 755/mt from a day earlier, with the highest price at USD 23,200/mt and the lowest price at USD 22,180/mt. Daily trading volumes were 178 lots, down 10 lots. Positions were 18,155 lots, down 63 lots. LME tin inventories were 19,230 mt, down 565 mt from a day earlier.
LME tin prices fell all the way after initial advance and hit a low of USD 22,180/mt, due to investors’ concern that Slovakia may not agree on expanding the euro zone rescue fund. LME tin prices were weighed in response, but advanced slightly at the tail of the trading to close at USD 22,395/mt, down USD 755/mt from a day earlier.
On Tuesday night, Slovakia did not pass the vote on expanding the powers of the European Financial Stability Facility (EFSF), dashing the hope for any relief of the European debt crisis. In addition, European Central Bank President Jean-Claude Trichet talked up the risk for contagion and warned that the debt crisis has reached ' systemic dimension.' In this context, market sentiment turned pessimistic. Moreover, the US Parliament passed 2011 Currency Exchange Rate Supervision Reform Bill, which required the US government to levy punishment tax on major trader partners whose exchange rate was underestimated, pressing the RMB to accelerate appreciation pace. The bill will inevitably affect exports of Chinese products and dampen demand for Chinese products. Bank share purchase by Central Huijin Investment only had short-lived impact on market, and equity market was generally weighed.
At present, negative factors overshadow positive factors in the market. SMM expects that LME tin prices may fall further on Wednesday and will find support at USD 22,000/mt. In domestic tin spot market, short sentiment is prevailing on overnight LME tin price slump, and investors’ confidence will wane to certain extent. SMM expects that spot tin prices will fall again and will move in the RMB 184,500-186,500/mt range on Wednesday.
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