SHANGHAI, Jan. 20 (SMM) -- LME tin for delivery in three months opened at USD 21,850/mt and closed at USD 21,900/mt overnight, up by USD 100/mt from a day earlier, with the highest price at USD 22,135/mt and the lowest price at USD 21,700/mt. Daily trading volumes were 309 lots, up by 99 lots. Positions were 15,629 lots, down by 129 lots from a day earlier. LME tin inventories were down by 140 mt to 10,745 mt.
The euro strengthened, and the upbeat economic data from the US boosted market sentiment. In response, LME tin price advanced to hit a high of USD 22,235/mt. However, LME tin prices pared early gains and closed at USD 21,900/mt, up USD 100/mt from a day earlier.
The US Department of Labor announced last Thursday that last week’s initial jobless claim fell to 352,000, the lowest since April 2008, with jobless claim decline most striking last Friday since September, 2005, which strongly boosted market sentiment. In addition, yields of French EUR 8 billion of medium-to-long term government bond fell, and Spain successfully sold EUR 6.6 billion of long-term government bond, exceeding pervious target by EUR 4.5 billion, with yields of 10-year government bond falling from 6.97% in November to 5.43% in November. Boosted by positive government bond auction, the euro was firm, and the US dollar fell to 80 mark. In response, LME base metal prices rallied across the board.
Based on current performance of LME tin prices, resistance is strongly felt at USD 22000/mt, and LME tin prices will continue to advance to test resistance level on Friday. Market concern eased to certain extent, but cautious attitude is still needed. In domestic nickel spot market, it is expected that spot tin prices will remain stable between RMB 170,500-172,500/mt on Friday.