SHANGHAI, Jan. 11 (SMM) -- LME tin for delivery in three months opened at USD 19,875/mt and closed at USD 20,155/mt overnight, up by USD 255/mt from a day earlier, with the highest price at USD 20,350/mt and the lowest price at USD 19,850/mt. Daily trading volumes were 344 lots, up by 18 lots. Positions were 15,996 lots, up by 47 lots from a day earlier. LME tin inventories were down by 60 mt to 11,270 mt.
Boosted by increase in China’s stock market and gains in euro, coupled with surge in China’s import data, market optimistic sentiment grew. In response, LME tin prices advanced to hit a high of USD 20,350/mt and closed at USD 20,155/mt, up USD 255/mt from a day earlier.
China’s trade surplus expanded from USD 14.53 billion in November to USD 16.52 billion in December, boosting commodity market. Meanwhile, the record high of China’s copper imports in December was interpreted by players as stock replenishment demand, which supported copper prices. In addition, it is expected that more aluminum producers the US will cut output in the following few months, which inspired LME aluminum prices to rally.
Despite of positive economic data released overnight, the ongoing European debt crisis still weighs on market sentiment. It is expected that LME tin prices may advance slightly, but will meet resistance at USD 20,500/mt technically. In China’s domestic tin spot market, spot tin prices advanced due to tight supply, but the steady increase in spot tin prices dampened downstream buying interest. It is expected that spot tin prices will move in the RMB 165,000-168,000/mt range on Wednesday.