SHANGHAI, Feb. 9 (SMM) -- LME tin for delivery in three months opened at USD 25,260/mt and closed at USD 25,280/mt overnight, up by USD 70/mt from a day earlier, with the highest price at USD 25,880/mt and the lowest price at USD 25,005/mt. Daily trading volumes were 501 lots, down by 75 lots. Positions were 19,442 lots, up 238 lost. LME tin inventories were down by 35 mt to 9,090 mt.
Boosted by optimism, LME tin prices extended upward momentum and hit a high of USD 25,880/mt during Asian and early European trading hours. However, as no further progress was reported from the Greek leaders meeting, risk appetite did not last long. In response, LME tin prices fell at the tail of the trading and closed at USD 25,280/mt, up USD 70/mt from a day earlier.
As no solid news came from Greek leaders meeting on Wednesday. Coupled with possible delay of Greek government bond swap plan since the European Central Bank did not make final decision whether or not participate for Greek debt restructure, LME base metal prices were weighed, with most closing with losses. It is expected that market focus will shift to January CPI and PPI to be released soon from China, and it is widely expected that CPI may stay around 4%.
Investors will continue to pay attention to development of Greek debt talk, and market sentiment is expected to be cautious and price trend for LME tin will be obscure before outcome of the talk. SMM expects that LME tin prices will remain fluctuation trend on Thursday, with support at USD 24,000/mt. In the Shanghai tin spot market, firm LME tin prices will support spot tin prices. Coupled with possible price hike by cargo-holders, SMM expects that spot tin prices will move in the RMB 178,500-183,500/mt range on Thursday.