SHANGHAI, Dec.1 (SMM) -- LME tin prices opened at USD 20,220/mt and closed at USD 20,600/mt overnight, up USD 75/mt from a day earlier, with the highest price at USD 20,950/mt and the lowest price at USD 20,050/mt. Daily trading volumes were 482 lots, up 267 lots. Positions were 15,178 lots, up 144 lots. LME tin inventories were 12,490 mt, down 85 from a day earlier.
China’s central bank announced on November 30th to raise bank requirement reserve ratio (RRR) by 0.5 percentage points, effective as of December 5th, the first time of RRR cut in two years, boosting market sentiment. In addition, the US Federal Reserve, the European Central Bank, the Bank of Canada, the Bank of England, the Bank of Japan, and the Swiss National Bank decided jointly take action to "enhance their capacity to provide liquidity support to the global financial system." In addition, the ADP employment data for November from the US was better than market expectation, injecting a dose of confine to players. Boosted by positive news, the US and European equity market rallied, and LME base metal prices soared in response. It is expected that Shanghai base metal prices will surge on Thursday.
Inspired by good news, LME tin prices finally found support at USD 20,050/mt.
The positive news will continue to support upward momentum, but cautious sentiment remains as investors are waiting for the US non-farm employment data to be released on Friday and the manufacture data in the euro zone. It is expected that LME tin prices will remain fluctuation trend on Thursday, with support at USD 20,000/mt. In China’s tin spot market, overnight LME tin price increase will boost spot tin prices to certain extent. SMM expects that LME tin prices will move in the RMB 168,500-172,000/mt range on Thursday.