SHANGHAI, Feb. 8 (SMM) -- LME tin for delivery in three months opened at USD 24,499/mt and closed at USD 25,210/mt overnight, up by USD 711/mt from a day earlier, with the highest price at USD 25,480/mt and the lowest price at USD 24,150/mt. Daily trading volumes were 576 lots, up by 349 lots. Positions were 19,204 lots, up by 46 lots from a day earlier. LME tin inventories were down by 275 mt to 9,125 mt.
LME tin prices fluctuated narrowly for most of the time overnight and largely moved below USD 24,500/mt. Market sentiment was boosted due to progress of Greek debt talk, sending the euro higher. In response, trading volumes of LME tin increased, and traded prices of LME tin also hit a high of USD 25,480/mt. Finally, LME tin prices closed at USD 25,210/mt, up USD 711/mt from a day earlier.
The Greek government accepted to implement austerity measures proposed by IMF and the European Union, suggesting that the US debt crisis is heading into positive direction. Greek officials revealed that the Greek government was preparing for the EUR 130 billion bailout agreement, winning market recognition that Greek is making efforts to solve its debt crisis.
Trading volume of and traded prices of LME tin both increased overnight, but any risks for LME tin prices to fall is possible. SMM expects that LME tin prices will continue to test support at USD 25,000/mt on Wednesday. Boosted by overnight’s LME tin price increase, spot prices may stop to fall, but lackluster downstream demand will weigh on spot tin prices. Therefore, SMM expects that spot tin prices will move in the RMB 179,500-183,500/mt range on Wednesday.