SHANGHAI, Nov.3 (SMM) -- LME tin prices opened at USD 21,700/mt and closed at USD 21,900/mt overnight, up USD 200/mt from a day earlier, with the highest price at USD 22,000/mt and the lowest price at USD 21,650/mt. Daily trading volumes were 100 lots, down 11 lots. Positions were 15,749 lots, down 420 lots. LME tin inventories were 15,895 mt, down 225 mt from a day earlier.
Trading sentiment was quiet, and trading volumes were limited in LME tin market overnight. Weaker US dollar and better-than-expected economic data from the US outweighed negative impact from the European debt crisis. In response, LME tin pries fluctuated higher overnight, but met resistance at USD 22,000/mt. Finally, LME tin prices closed at USD 21,900/mt, up USD 200/mt from a day earlier. The Federal Reserve announced on Wednesday to keep interest rate unchanged between 0-0.25%, boosting market sentiment to certain extent.
LME base metal prices rebounded on Wednesday after declining for three consecutive days, as market concern over the European debt crisis eased to certain extent following Federal Reserve's statement that the Fed will provide help when necessary. Rebound of equity markets in the US and Europe also boosted base metal prices, with the Dow Jones Industrial Average up 178.08 points. The European equity market closed with gains on Wednesday after declining for three consecutive days. In domestic market, market sentiment was also boosted by improved liquidity from policy fine tune and successful launch of Shenzhou eighth airship. Close attention should be paid to G20 summit scheduled on Thursday and Friday.
SMM expects that LME tin prices will advance slightly, and will test sustainability at USD 22,000/mt on Thursday. In China’s spot tin market, spot tin prices may hard to present robust performance, as LME tin price fail to break significant breakthrough, and spot tin may move stably in the RMB 180,000-182,000/mt on Thursday.