SHANGHAI, Oct. 18 (SMM)—LME tin market overnight opened at USD 22,200/mt, with the highest and lowest level of USD 22,350/mt and USD 20,900/mt, respectively. Finally, LME tin market closed at USD 20,950/mt, down USD 950/mt from a day earlier. Trading volumes were 223 lots, down by 12 lots. Positions were 18,116 lots, up by 27 lots. Inventories were 19,060 mt, down by 25 mt.
LME tin market overnight showed quiet movements during Asian trading hours, with prices fluctuating narrowly after opening, but weakened during European trading hours along with the unfavorable comments made by German Finance Ministers. Meanwhile, the US announced disappointing economic data, weighing down US equities, with tin prices down below USD 21,000/mt. Finally, LME tin prices closed at USD 20,950/mt, down USD 950/mt from a day earlier.
The comments made by German Finance Minister on Monday dent markets expectations towards measures to resolve the European debt issues, as markets worried whether G-20 will act together to resolve the debt problem, and the issue in the Europe will worsen further if the European Union again moves slow for the debt problem. In this context, market risk aversion sentiment increased on Monday. Meanwhile, the poor manufacturing data announced by US added to market fears, sending all three major US indexes down at the closing. The Euro, together with other commodities, dropped sharply, and the US dollar index advanced significantly in response. All these negative factors sent all metal prices down at the closing.
The unfavorable comments for the European debt issues, which depressed market sentiment yesterday, will continue to negatively affect markets on Tuesday. China will announce the GDP for 3Q, which will affect price movements. Given prices returned above USD 21,000/mt after opening, LME tin prices will continue to fluctuate on Tuesday, with resistance at around USD 22,000/mt. Domestic tin market will remain weak on Tuesday, with prices expected to between RMB 181,500-185,000/mt.