SHANGHAI, Nov. 4 (SMM)-LME tin market overnight opened at USD 22,000/mt, with the highest and lowest level of USD 22,150/mt and USD 21,705/mt, respectively. Finally, LME tin market closed at USD 22,075/mt, up USD 175/mt from a day earlier. Trading volumes were 148 lots, up by 48 lots. Positions were 15,739 lots, down by 10 lots. Inventories were 15,690 mt, down by 205 mt.
During Asian trading hours, LME tin prices came under downward pressure, with prices slightly dropping to USD 21,705/mt. During European trading hours, LME tin prices rose initially, but later fell back after reaching as high as USD 22,150/mt. At the tail of trading, LME tin prices rallied, with prices finally ending at USD 22,075/mt, up USD 175/mt from a day earlier. The possibility that Greek Prime Minister may scrap the referendum plan helped ease market worries. Meanwhile, the ECB made a surprise move to reduce interest rates boosted the global equities market. In addition, the US labor market improved moderately according to the data.
Greek Prime Minister George Papandreou said he would abandon the referendum plan if the opposition agreed to back the package in parliament, which helped ease market worries over uncertainties from the referendum. In addition, the ECB unexpectedly decided to cut interest rates by 25 basis points to 1.25% on Thursday, leaving another round of global quantitative easing possible. As a result, LME metals market gained, but finished with mixed results. Rising equities in the Europe and US indicated a recovery of the market. On Friday, particular attention should be paid to the developments at the G-20 summit, and the upcoming US non-farm data, and markets are generally optimistic towards the result.
Supported by optimism overnight, LME tin prices are expected to move around USD 22,000/mt on Friday. In domestic tin market, spot demand remains weak, and the arrival of imported tin has further reduced demand for domestic tin. SMM believes that domestic tin prices will remain weak on Friday, with prices expected to be move between RMB 179,500-182,000/mt.