SHANGHAI, Feb. 7 (SMM) -- LME tin for delivery in three months opened at USD 24,300/mt and closed at USD 24,499/mt overnight, up by USD 253/mt from a day earlier, with the highest price at USD 24,500/mt and the lowest price at USD 23,935/mt. Daily trading volumes were 227 lots, down by 94 lots. Positions were 19,158 lots, up by 172 lots from a day earlier. LME nickel inventories were up by 160 mt to 9,400 mt.
LME tin prices were on downward track during Monday’s Asian trading hours and early European trading hours, but pared losses and finally closed at USD 24,499/mt, up USD 253/mt from a day earlier. The stagnant Greek debt talk weighed on base metal prices, but strong fundamentals pushed LME tin prices higher.
Base metal prices were largely weighed by renewed concern over the Greek debt crisis. The debt talk between Greek government and its creditors was postponed from February 5th to 8th. In addition, the deadline for second round Greek bailout negotiation between IMF and Greek government will be postponed to from February 6th to 7th, as Greece still doesn't accept conditions. The stagnant Greek debt talk triggered investors’ renewed concern over the European debt crisis, weighing on most LME base metals and European and the US equity markets.
Greek leaders will hold a meeting to discuss reform measure proposed by IMF, which will arouse investors’ close attention. SMM believes that LME tin prices will continue to hover at high level on Tuesday, with current resistance at USD 245,000/mt, and support between USD 23,500-24,000/mt. In the Shanghai tin spot market, SMM expects that spot tin prices will slip to move in the RMB 179,500-183,500/mt range on Tuesday, due to increased supply and sluggish demand.