SHANGHAI, Nov.28 (SMM) -- LME tin prices opened at USD 20,270/mt and closed at USD 20,450/mt last Friday, up USD 125/mt from a day earlier, with the highest price at USD 20,600/mt and the lowest price at USD 20,000/mt. Daily trading volumes were 373 lots, up 251 lots. Positions were 15,624 lots, up 950 lots. LME tin inventories were 12,795 mt, down 435 from a day earlier.
Last Fridays’ meeting participated by finance ministers from Germany, the Netherlands and Finland did not come up with any constructive suggestions. The Finland’s finance minister was opposed to issue eurozone bonds, weighing market sentiment in the short term and dragging down non-US dollar currencies. Due to increasingly growing concern that the European debt crisis may curb global economic growth and dampen demand for commodities in the future, investors' bullish expectation of base metal prices was significantly reduced. LME base metal prices largely presented weak performance last Friday. In addition, the remarks from Chinese government that they will continue regulation on real estate industry fueled short sentiment in the market.
LME tin prices fluctuated lower to hit a low of USD 20,000/mt during the Asian trading hours, but pared certain losses during the evening trading hours. At the tail of the trading, LME tin prices advanced to hit a high of USD 20,600/mt on support from dip-buying, and closed at USD 20,450/mt, up USD 125/mt from a day earlier.
The exacerbating European debt crisis fueled risk aversion sentiment, sending the US dollar above 79 and weighing down base metal prices. SMM expects that LME tin prices will continue to fluctuate narrowly at low levels, with support at USD 20,000/mt on Monday. In China’s tin spot market, although smelters kept offers firm, supply of low-priced tin from importers and traders continued to weigh on spot tin prices. Therefore, SMM expects that spot tin prices will continue to fall to move in the RMB 172,500-175,500/mt range on Monday.