SHANGHAI, Oct. 27 (SMM) -- LME tin prices opened at USD 22,500/mt and closed at USD 22,100/mt overnight, down USD 229/mt from a day earlier, with the highest price at USD 22,600/mt and the lowest price at USD 21,900/mt. Daily trading volumes were 204 lots, down 37 lots. Positions were 16,850 lots, down 191 lots. LME tin inventories were 16,525 mt, down 450 mt from a day earlier.
After advancing slightly on positive expectation on Wednesday's EU summit during the early trading hours, LME tin prices met resistance to climb further due to news from Europe. LME tin prices were weighed to hit a low of USD 21,900/mt and closed USD 229/mt lower at USD 22,100/mt following the news that European finance ministers' meeting was cancelled. In addition, the consumer confidence index in October from the US fell to a 2.5-year low, further weighing down market sentiment.
Market sentiment suddenly became cautious following the news that the EU summit still failed to settle down specific details, and Wednesday’s European finance ministers' meeting would be cancelled. As investors concerned that the EU summit may fail to come up with European crisis solution, stock and base metal prices both fell sharply. In addition, lower-than-expected manufacture data and consumer confidence index from the US also weighed on market sentiment. Although it was confirm later that the EU summit would be held on schedule and the European finance ministers' meeting would be convened after the EU summit, market expectation was not optimistic. It is expected that market sentient will remain cautious before the announcement of Thursday’s Q3 GDP data from the US.
SMM expects LME tin prices will be affected by outcome of the EU summit and will fluctuate around USD 22,000/mt on Wednesday. In China’s domestic tin spot market, LME tin price decline may weigh on sentiment in spot market, and SMM expects that LME tin prices will move in the RMB 180,000-183,000/mt on Wednesday.