SHANGHAI, Nov.22 (SMM) -- LME tin prices opened at USD 21,200/mt and closed at USD 20,500/mt overnight, down USD 1,000/mt from a day earlier, with the highest price at USD 21,200/mt and the lowest price at USD 20,500/mt. Daily trading volumes were 252 lots, up 61 lots. Positions were 15,143 lots, down 224 lots. LME tin inventories were 13,325 mt, flat from a day earlier.
Concern over the European debt crisis and expectation over global economy slowdown continued to weigh on market sentiment. Moody's Investors Service Inc. warned on Monday that France's credit outlook faced threats in view of increasing government financing cost and weakening economic growth prospective. In addition, the congressional "super committee" which was set to cut 1.2 trillion dollars of US deficit over next 10 years before the deadline on Wednesday, has declared a failure of the bipartisan talks, triggering investors concern over the US economic outlook. Coupled with lower-than-expected US economic data, global risk assets were weighed down further, and the US and European equity markets plunged as well. Boosted by risk aversion sentiment, the US dollar advanced, but commodity market experienced severe sell-offs overnight.
The equity markets slumped overnight due to concern over outlook of France’s credit rating and failure of the US deficit cut, dragging down commodity market. LME tin prices tumbled to USD 20,600/mt during the early European trading hours, and fell further at the tail of the trading to close at USD 20,500/mt, down USD 1,000/mt from a day earlier.