SHANGHAI, Jan. 5 (SMM) -- LME tin for delivery in three months opened at USD 19,973/mt and closed at USD 19,650/mt overnight, down by USD 250/mt from a day earlier, with the highest price at USD 19,973/mt and the lowest price at USD 18,900/mt. Daily trading volumes were 151 lots, down 186 lots. Positions were 15,962 lots, up by 255 lots from a day earlier. LME tin inventories were 11,795 mt, down 300 mt.
Trading activity on the LME tin market was sluggish overnight, and LME tin prices returned to near USD 19,800/mt after falling by USD 1,000/mt, with prices finally closing at USD 19,650/mt, down USD 250/mt. Concerns over European debt crisis weighed down metal prices.
Sources report that Spanish government is considering applying for loans from the European Union’s rescue fund and the International Monetary Fund to finance the restructuring of the country’s financial industry, and European commercial banks' overnight deposits at the European Central Bank hit a new record high on January 3rd, both triggering market fears of European debt crisis. In response, European financial markets weakened, and US dollar index climbed, with LME base metal prices falling as a result. In general, European debt crisis and the possibility that the euro zone economy will slip into recession will be major factors restricting the upward room for metals prices.
SMM predicts LME tin prices will likely fall further to USD 19,000/mt today. In domestic tin spot market, tin prices are expected to move between RMB 159,000-160,000/mt. If market supply increases, there is a possibility tin prices will fall below RMB 159,000/mt.