SHANGHAI, Dec. 16 (SMM) -- LME tin for delivery in three months opened at USD 18,750/mt and closed at USD 18,600/mt overnight, down by USD 100/mt from a day earlier, with the highest price at USD 18,900/mt and the lowest price at USD 18,600/mt. Daily trading volumes were 221 lots, down 125 lots. Positions were 17,252 lots, up 204 lots from a day earlier. LME tin inventories were up by 100 mt to 12,115 mt.
Market sentiment was boosted on better-than-expected PMI from China and the euro zone as well as upbeat manufacture dada and employment data from the US. Coupled with successful auction of Spanish government bond, market confidence recovered. Standard & Poor cut credit ratings of 10 Spanish banks, with negative outlook. Afterwards, Fitch Ratings cut credit ratings of Barclays, Goldman Sachs and many other renowned banks, but did not cut credit rating of any euro zone countries, easing market concern over the euro zone to certain extent. In addition, the US dollar and the euro are both expected to experience technical adjustment.
LME tin prices were relatively stable and moved between USD 18,600-18,900/mt, and closed at USD 18,600/mt overnight, down USD 100/mt from a day earlier. The concern over the economic recession in the euro zone and over demand from China weighed on base metal prices. LME tin prices received limited support from successful auction of the Spanish government bond, and finally closed with losses overnight.
Short sentiment still prevails in the market. It is expected that LME tin prices will remain fluctuation trend, but shall experience technical correction. SMM expected that LME tin prices will largely move in the RMB 18,500-19,000/mt range on Friday. In the Shanghai tin spot market, smelters’ reluctance to move goods will reduce supply of low-priced tin. It is expected that spot tin prices will only slip slightly, and will move in the RMB 157,500-160,500/mt range on Friday.