SHANGHAI, Dec. 30 (SMM) -- LME tin for delivery in three months opened at USD 18,900/mt and closed at USD 18,800/mt overnight, down by USD 200/mt from a day earlier, with the highest price at USD 19,200/mt and the lowest price at USD 18,750/mt. Daily trading volumes were 146 lots, down 103 lots. Positions were 15,831 lots, up by 161 lots from a day earlier. LME tin inventories were up by 60 mt to 11,940 mt.
Base metal prices swung back and forth overnight. Initially, the euro versus the US hit a 15-month low, weighing on base metal prices. However, base metal prices then drew support along with improved risk appetite as the US economic data vaulted market expectation. LME base metal prices erased early gains, with LME copper and tin price leading gains. No solid news is expected at the last trading day of 2011.
Trading volumes were thin, and traded prices were largely between USD 18,800-19,000/mt in LME tin market, the daily high at USD 19,200/mt only recorded during the Asian trading hours. Italy’s debt auction disappointed market players, dragging down LME tin prices.
SMM believes that LME tin prices will continue to fluctuate at low levels on Friday with current resistance at USD 19,000/mt and support at USD 18,500/mt. In domestic tin spot market, supply of low-priced goods was limited due to cargo-holders increasing unwillingness to move goods, but sluggish downstream demand will not lend support for spot tin prices. SMM expects that spot tin prices will move stably in the RMB 158,000-159,500/mt range on Friday.