SHANGHAI, Oct. 28 (SMM) -- LME tin prices opened at USD 21,975/mt and closed at USD 22,000/mt overnight, up USD 375/mt from a day earlier, with the highest price at USD 22,200/mt and the lowest price at USD 21,825/mt. Daily trading volumes were 184 lots, up 61 lots. Positions were 16,349 lots, up50 lots. LME tin inventories were 16,590 mt, unchanged from a day earlier.
LME tin prices largely fluctuated around USD 22,000/mt overnight. Boosted by positive expectation over the European economy, the euro advanced against the US dollar to hit a 7-week high. In addition, the US GDP in Q3 was positive, fueling risk appetite. In response, the US dollar slipped, boosting base metal prices. LME tin prices closed at USD 22,000/mt, up USD 375/mt from a day earlier.
Euro zone leaders struck a deal early Thursday after an eight- hour meeting, in which private banks and insurers agreed on a 50 percent write-down of Greek government debt and the policymakers decided to expand the bloc's financial rescue fund to 1 trillion euros and to recapitalize European banks. Although the detailed implementation plans were still unavailable, the deal reached by European leaders was a solid step in solving the European debt crisis. Once the European debt crisis is solved, risks for global economic recovery will reduce to great extent, which will boost market sentiment and fuel risk appetite. In response, major stock indexes in the Asian-Pacific region all rallied and risk assets also closed with gains. Base metal prices surged overnight, with LME three month copper contract price leading the rally.
SMM expects that LME tin prices will struggle around USD 22,000/mt, and are expected to advance further to meet resistance at USD 23,000/mt today. In china's domestic tin spot market, boosted by overnight LME tin price surge, spot tin prices will be firm between RMB 181,000-183,000/mt on Friday.