SHANGHAI, Jan. 19 (SMM) – LME tin prices opened at USD 21,600/mt and closed at USD 21,800/mt overnight, up USD 89/mt from a day earlier, with the highest price at USD 21,900/mt and the lowest price at USD 21,401/mt. Daily trading volume were 210 lots, down 324 lots. Positions were 15,758 lots, up 89 lots. LME tin inventories were 10,885mt, down 50 mt.
LME tin market was relatively quiet during Asian trading hours. However, LME tin prices advanced to a high of USD 21,900/mt after initial decline and closed at USD 21,800/mt, up USD 150/mt from a day earlier, during the early European trading hours, as strength in euro boosted base metal prices.
Yields of Portugal’s government bond rose to record high of 14.54% on Wednesday. In addition, the Fitch may cut Italy’s sovereign credit rating by two notches and Germany also cut economic growth expectation for 2012, weighing on market sentiment. News from the US reported that the negotiation between Greece and its private debtors may reach an agreement before this week, and the Greek officials later expressed that agreement may be reached before this week, boosting optimism towards Greek debt negotiation. In response, the euro advanced and LME base metal prices largely closed with gains, which boosted Shanghai base metal prices as well. Market is focusing the Greek debt negotiation. It is expected that the European debt crisis will be eased to certain extent if agreement is reached on debt swap. Otherwise, Greek will face debt default risk.
LME tin prices have extended upward momentum for a long time, and shall face correction risk after hitting new high in the short term, with resistance at USD 22,000/mt and support at USD 21,000/mt. In China’s spot tin market, the muted trading sentiment but limited supply of goods will make spot tin prices move stably in the RMB 170,500-172,500/mt range on Thursday.