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SMM Morning Review – 2011/11/17 Tin Market
Nov 17,2011 09:42CST
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SMM expects that spot tin prices will move in the RMB 178,000-180,000/mt range on Thursday.

SHANGHAI, Nov.17 (SMM) -- LME tin prices opened at USD 21,380/mt and closed at USD 21,650/mt overnight, up USD 500/mt from a day earlier, with the highest price at USD 21,670/mt and the lowest price at USD 21,310/mt. Daily trading volumes were 93 lots, down 39 lots. Positions were 14,310 lots, down 919 lots. LME tin inventories were 14,310 mt, down 240 mt from a day earlier.

LME tin prices were weighed below USD 21,500/mt for most of the time overnight, but finally broke through USD 21,500/mt and closed at USD 21,650/mt, up USD 500/mt from a day earlier. Many investors exited market due to uncertainties of the European debt crisis, resulting in limited trading volumes. However, upbeat economic data from the US inspired market sentiment, and Italian’s 10-year government bond yields' falling from 7% also boosted market. 

Except Germany, the yields of sovereign debt for euro zone countries all advanced, despite that the European Central Bank brought government bonds of Italy, Spain, and Portugal. In addition, the US dollar index continued to advance. Moreover, Fitch released a report showing concern that the expansion of European debt crisis may threaten U.S. banks' credit rating. In this context, risk aversion sentiment was fueled in the market. Investors will closely watch government bonds auction of Spain and France.

European debt crisis will continue to affect market sentiment and weigh on base metal prices. SMM expects that LME tin prices will continue to fluctuate at low level, and will test support a USD 21,000/mt on Thursday. In China’s domestic tin spot market, overnight LME tin price increase will boost market sentiment, and few traders’ reluctance to move goods will not affect mainstream prices. Therefore, SMM expects that spot tin prices will move in the RMB 178,000-180,000/mt range on Thursday.  

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

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