SHANGHAI, Nov.29 (SMM) -- LME tin prices opened at USD 20,500/mt and closed at USD 20,600/mt overnight, up USD 150/mt from a day earlier, with the highest price at USD 20,799/mt and the lowest price at USD 20,350/mt. Daily trading volumes were 225 lots, down 148 lots. Positions were 15,127 lots, down 497 lots. LME tin inventories were 12,720 mt, down 75 from a day earlier.
The US and European equity markets closed with significant gains on November 28th, with the Stoxx index recording the largest single day increase in recent month. The European leaders are trying to come up with more radical European debt solution. In addition, the strong US retail sales during the Thanksgiving Day holiday also boosted market confidence. With eased concern over the European debt crisis, the US dollar index fell, while gold and base metal prices advanced. The fine-tuning tone of China's domestic policy is clear, but possibility for a further fine-tuning of policy will be relatively small in the short term. It is expected that market will remain cautious before the annual Central Economic Work Conference scheduled in early December.
LME tin prices fluctuated higher overnight, due to a combination of new hopes of European debt crisis, strong retail sales and new home sales in the US, and better-than-expected sales of Belgium and Italy’s government bond. LME tin prices closed at USD 20,600/mt overnight, up USD 150/mt from a day earlier.
Market sentiment was boosted to certain extent on the hope that European leaders will discuss new solutions to the European debt crisis, but market sentiment will still be weighed since the debt crisis remains unsolved. SMM expects that LME tin prices will continue to remain fluctuation trend, with support at USD 20,000/mt on Tuesday. In China’s tin spot market, the rebound of LME tin prices as well as smelters’ reluctance to move goods will support spot tin prices. SMM expects that spot tin prices will move in the RMB 172,500-175,000/mt range on Tuesday.