SHANGHAI, Feb. 13 (SMM) -- LME tin for delivery in three months opened at USD 25,250/mt and closed at USD 25,050/mt overnight, down by USD 550/mt from a day earlier, with the highest price at USD 25,544/mt and the lowest price at USD 24,800/mt. Daily trading volumes were 413 lots, down by 5 lots. Positions were 19,534 lots, up by 322 lots from a day earlier. LME tin inventories were up by 60 mt to 9,150 mt.
LME tin prices hovered at high level during last Friday’s Asian trading hours and early European trading hours. However, LME tin prices were weighed down to struggle around USD 25,000/mt during the European trading hours as the renewed concern over the European debt led to decline in the commodity and stock market in the euro zone. In this context, LME tin prices finally closed at USD 25,050/mt, down USD 550/mt from a day earlier.
The mild monetary policy from Australian Central Bank and a drop in China’s import data weighed on market sentiment. In addition, the Euro-zone finance ministers have withheld approval for Greece's latest bailout, demanding proof that the country's political leaders would deliver on their commitments to international creditors. Coupled with strong defiant mood in Greece, and lower-than-expected consumer confidence index in the US, LME base metal prices closed with losses across the board. Although the Greek parliament finally approved loans and austerity measures at the weekend, market sentiment was still not optimistic.
Haunted by renewed Greek debt crisis, SMM expects that LME tin prices will continue to be weighed and shall test support at USD 25,000/mt. If LME tin prices fall below support level, prices will find new support at USD 24,000/mt on Monday. In China’s domestic tin spot market, last Friday’s LME tin price decline will dampen cargo-holders confidence, but firm offers from tin smelters will support spot tin prices to certain extent. SMM expects that LME tin prices will largely move in the RMB 178,000-183,500/mt range on Monday.