SHANGHAI, Feb. 10 (SMM) -- LME tin for delivery in three months opened at USD 25,400/mt and closed at USD 25,600/mt overnight, up by USD 320/mt from a day earlier, with the highest price at USD 25,780/mt and the lowest price at USD 24,045/mt. Daily trading volumes were 418 lots, down by 83 lots. Positions were 19,212 lots, down by 230 lots from a day earlier. LME tin inventories were 9,090 mt, unchanged from a day earlier.
Hit by higher-than-expected CPI from China, LME tin prices slumped to USD 24,000/mt during Thursday’s Asian trading hours, but later pared losses and fluctuated higher. During Thursday’s European trading hours, Greek parliament reached an agreement on austerity plan, boosting market sentiment. In addition, tin exported from Indonesia, a major tin origin, was down 27% YoY, lending support for tin prices. In this context, LME tin prices closed USD 320/mt higher from a day earlier.
Greek Premier Papademos announced that Greek leaders accepted all provisions for the bailout plan, excluding only one provision. Market widely expects that the Greek government will soon reach agreement with private sectors on all provisions. The Greek debt crisis which haunted market for quite a long time finally shed a light, boosting risk appetite in the market. In addition, rebound in China’s stock market also supported base metal prices.
Boosted by progress in Greek austerity plan, SMM expects that LME tin prices will continue to hover at high level, with resistance between USD 25,500-26,000/mt and support at USD 24,000/mt. Inspired by overnight’s LME tin price increase, spot prices are expected to advance, and will fluctuate in the RMB 178,000-183,000/mt range on Friday.