SHANGHAI, Jan. 6 (SMM) – LME tin prices opened at USD 19,650/mt and closed at USD 19,800/mt overnight, up USD 50/mt from a day earlier, with the highest price at USD 19,980/mt and the lowest price at USD 19,480/mt. Daily trading volume were 264 lots, up 113 lots. Positions were 15,572 lots, down 390 lots. LME tin inventories were 11,360 mt, down 435 mt.
Financial market swung widely on Thursday night. LME base metal prices slumped along with non-US dollar currencies due to ongoing concern over the European debt crisis. However, better-than-expected initial jobless claim from the US suggested improvement in the US employment market. In response, market sentiment was boosted, and the US equity market closed wit gains on Thursday. The improvement in the US employment data eased market concern over the European debt crisis, resulting in rebound in US equity market, which boosted LME base metal prices to certain. However, most LME base metal prices still closed with slight losses overnight. It is expected that transactions will be cautious before the announcement of US non-farm employment data scheduled to release on Friday, and Shanghai base metal prices will slip slightly on Friday.
Trading sentiment was quiet in LME tin market overnight. During the early European trading hours, LME tin prices fell slightly to USD 19,500/mt, but advanced to hit a high of USD 19,980/mt later, with prices finally closing at USD 19,800/mt, up USD 150/mt from a day earlier. LME tin was the only product that closed with gains overnight. The European debt crisis dampened base meal demand, and concern over economic slow down in China also weighed on base metal market.
Despite of positive economic data from the US, market concern over the European debt crisis continued to weigh on metal prices. It is expected that LME tin prices will remain fluctuation trend on Friday, with support available at USD 19,000/mt and resistance at USD 20,000/mt. In China’s tin spot market, although LME tin prices advanced slightly above USD 160,000/mt, the price increase dampened downstream buying interest. Coupled with weak momentum of LME tin prices, SMM expects spot tin prices will lack upward momentum and will move in the RMB 159,500-161,000/mt range on Friday.