SHANGHAI, Dec.6 (SMM) -- LME tin prices opened at USD 19,750/mt and closed at USD 20,100/mt overnight, up USD 200/mt from a day earlier, with the highest price at USD 20,300/mt and the lowest price at USD 19,725/mt. Daily trading volumes were 534 lots, up 199 lots. Positions were 15,877 lots, up 213 lots. LME tin inventories were 12,165 mt, up 10 from a day earlier.
Leaders from Franco and German planned to rewrite the EU constitution for more central control of euro zone budgets overnight, which boosted base metal prices move higher overnight. However, the Standard and Poor’s 15 euro zone nations, including Germany, France, the Netherlands, Austria, Finland, Italy, Luxembourg, on "credit watch negative" on Monday due to tightening credit conditions and possible rising of government bond. In response, stock and commodity markets pared intraday gains and LME base metal prices closed mixed with reduced risk appetite in the market. It is expected that market sentiment will be cautious before release of major central banks’ interest rate decision and China’s CPI data.
LME tin largely fluctuated between USD 19,800-20,000/mt during the Asian trading hours and early European trading hours. Boosted by speech by leaders from Franco and German, LME tin prices advanced to hit a high of USD 20,300/mt and closed at USD 20,100/mt overnight, up USD 200/mt from a day earlier.
It is expected that market sentiment will remain cautious as the EU interest rate meeting will be held this Friday and since China will release it CPI soon. Therefore, SMM expects that LME tin prices will fluctuate around USD 20,000/mt. In China’s domestic spot tin market, spot tin prices are expected to move at low levels between RMB 163,500-168,500/mt on Tuesday, since spot tin prices tumbled on Monday.