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SMM Morning Review – 2011/11/9 Tin Market
Nov 9,2011 10:12CST
price review forecast
SMM expects that LME tin prices will move in the RMB 179,500-181,500/mt range on Wednesday.

SHANGHAI, Nov.9 (SMM) -- LME tin prices opened at USD 22,000/mt and closed at USD 22,300/mt overnight, up USD 375/mt from a day earlier, with the highest price at USD 22,350/mt and the lowest price at USD 22,000/mt. Daily trading volumes were 334 lots, up 271 lots. Positions were 15,640 lots, up 201 lots. LME tin inventories were 14,990 mt, flat from a day earlier.

LME tin prices advanced all the way, breaking through resistance level of USD 22,200/mt to hit a high of USD 22,350/mt, and later closed at USD 22,300/mt, up USD 375/mt from a day earlier. Trading volumes of LME tin also increased significantly, suggesting improved sentiment in LME tin market. Italy passed goverment budget plan on Tuesday, boosting market optimism.

The European debt crisis is still the major concern for market investors. The fragile political situation in Italy triggered investors' worries that Italy may not keep its austerity plan committed on the G20 summit, which sent the 10-year Italian bond yields to a record high since it entered the euro zone. In response, the non-US dollar currencies were weighed down. However, Prime Minister Silvio Berlusconi' s announced that he would resign after Parliament passes economic reform measures, boosting market sentiment to great extent. In response, LME base metal prices advanced to certain extent at the tail of the trading. China will release a slew of important economic indicator on Wednesday. Market player were optimistic towards the data, expecting that China’s CPI may fall to around 5.5%. This further increased market expectation over slight loose monetary policy in China. Improved market liquidity will lend upward momentum for market, which will guide base metal prices to rebound. 
It is expected that LME tin prices will test stability between USD 22,000-22,200/mt, and may advance further to point USD 22,500/mt on Wednesday. In China's spot tin market, overnight LME tin price increase will boost spot tin market, but soft downstream demand will cap spot tin prices from rising further. In this context, SMM expects that LME tin prices will move in the RMB 179,500-181,500/mt range on Wednesday. 

tin; tin price; LME tin price; spot tin price; European debt crisis; US dollar; euro;

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