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SMM Morning Review - 2011/12/12 Tin Market
Dec 12,2011 09:40CST
smm insight
SMM expects that spot tin spot prices will largely move in the RMB 159,500-165,000/mt range on Tuesday.

SHANGHAI, Dec. 12 (SMM) -- LME tin for delivery in three months opened at USD 20,200/mt and closed at USD 20,275/mt last Friday, up by USD 175/mt from a day earlier, with the highest price at USD 20,399/mt and the lowest price at USD 20,050/mt. Daily trading volumes were 128 lots, down 99 lots. Positions were 16,794 lots, up by 516 lots from a day earlier. LME tin inventories were up by 260 mt to 12,165 mt.

The EU summit ended last Friday. Although Britain did not agree to revise the European Constitution, the 26 out of 27 euro zone members led by Germany and France agreed on deeper European integration and stricter budget rules. News from the EU summit boosted stock market and non-US dollar currencies slightly higher. As the market has quickly absorbed the positive news, it is expected that financial market may dip further if the European debt crisis deteriorates further in the future. China’s November CPI announced on December 9th was up 4.2% YoY, lower than expectation of a 4.5% YoY growth, which fueled investors’ expectation over further loose monetary policy from Chinese government. However, China’s lower-than-expected industrial output for November suggested unoptimistic status of China's real economy. Coupled with lingering European debt crisis, the overall macro economic condition remains fragile.

LME tin market was quiet last Friday, with limited transactions reported. During the European trading hours, LME tin prices largely fluctuated around USD 20,200/mt, but prices were boosted to hit a high of USD 20,399/mt on positive news from the EU summit during the European trading hours. Finally, LME tin prices closed at USD 20,275/mt, up USD 175/mt from a day earlier.

Last Friday’s EU summit boosted market sentiment, but the lack of details of the European debt solution diluted bullish sentiment. It is expected that LME tin prices will continue to fluctuate on Monday, and will be supported at USD 20,000/mt.In China’s domestic spot market, Friday’s LME tin price increase will support spot tin prices. SMM expects that spot tin spot prices will largely move in the RMB 159,500-165,000/mt range on Tuesday.

tin; tin price; LME tin price; spot tin price; European debt crisis; US dollar; euro; Dec. 12; in the Shanghai tin spot market;

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