SHANGHAI, Jan. 17 (SMM) -- LME tin for delivery in three months opened at USD 21,000/mt and closed at USD 21,010/mt last Friday, down by USD 65/mt from a day earlier, with the highest price at USD 21,100/mt and the lowest price at USD 20,800/mt. Daily trading volumes were 135 lots, down 154 lots. Positions were 16,091 lots, up by 225 lots from a day earlier. LME tin inventories were down by 45 mt to 11,160 mt.
LME tin prices fluctuated around USD 21,000/mt on Monday night, as investors almost digested negative news that Standard and Poor’s cut credit rating of nine European countries and were waiting for economic growth data from China. Absent any appreciable improvement in market sentiment, LME tin prices closed at USD 21,010/mt, down USD 65/mt from a day earlier.
No solid news came from overseas market overnight. As market gradually digested news that Standard & Poor’s cut credit rating of nine European countries, market sentiment gradually stabilized. Standard & Poor’s announced overnight to cut EFSF's credit rating from AAA to AA+, and set the outlook to negative. It is expected that Standard & Poor’s will restore its outlook to AAA if EFSF’s finances improve. The news exerted limited impact on market, with euro fluctuating narrowly and LME base metal prices closing mixed. China will announce GDP data for Q4 2011 at 10:00 am on Tuesday. If the data only slips slightly than market expectation, it will exert limited impact on base metals. Otherwise, it will strongly affect base metal movements.
It is expected that market sentiment will remain cautious before release of China’s economic data. SMM expects LME tin prices will continue to test support at USD 21,000/mt. In China’s domestic market, spot tin prices will move between RMB 170,000-171,500/mt amid quiet trading sentiment as downstream producers will close for holiday.