SHANGHAI, Nov.23 (SMM) -- LME tin prices opened at USD 20,900/mt and closed at USD 20,750/mt overnight, up USD 250/mt from a day earlier, with the highest price at USD 20,900/mt and the lowest price at USD 20,390/mt. Daily trading volumes were 162 lots, down 90 lots. Positions were 15,344 lots, up 201 lots. LME tin inventories were 13,180 mt, down 145 from a day earlier.
LME tin prices fluctuated narrowly overnight. According to remarks from Standard and Poor’s and Moody’s, failure of the US deficit reduction negotiation would not negative affect the US credit rating, easing market concern to certain extent. However, the US GDP data for Q3 was lower than market expectation, dampening market confidence. LME tin prices were weighed to close at USD 20,750/mt overnight, up USD 250/mt from a day earlier.
The remarks from three credit rating agencies dispelled market concern that the US credit rating may be cut down. In addition, market concern eased to certain extent as Greek parties promised the European Union in a written form to continue its deficit-cutting policies. The lower-than-expected GDP data from the US and the US Federal Reserve meeting minutes would have limited impact on market. Moreover, some financing institutions in rural area in Zhejiang province were allowed to cut bank requirement reserve ratio by 50 basis points, which would boost China's stock market to certain extent.
Market players will pay attention to HSBC’s China PMI on Wednesday. Although China’s monetary policy has eased to certain extent, the European debt crisis will continue to cloud base metal market. SMM expects that LME tin prices will continue to fluctuate at low level, with support at USD 20,000/mt. In China’s tin spot market, spot tin prices will be negatively affected by bearish sentiment and will largely move in the RMB 173,500-176,500/mt range on Wednesday.