SHANGHAI, Feb. 14 (SMM) -- LME tin for delivery in three months opened at USD 25,000/mt and closed at USD 24,959/mt overnight, down by USD 91/mt from a day earlier, with the highest price at USD 25,415/mt and the lowest price at USD 24,900/mt. Daily trading volumes were 178 lots, down by 235 lots. Positions were 20,046 lots, up by 512 lots from a day earlier.LME tin inventories were up by 40 mt to 9,190 mt.
Inspired by Greek Parliament’s pass of austerity plan, LME tin prices advanced all the way to hit a high of USD 25,400/mt during Monday’s Asian trading hours. However, as optimism waned along with concern over actual implementation of the austerity plan during the European trading hours, LME tin prices fell from high and closed at USD 24,959/mt, down USD 91/mt from a day earlier.
The Greek Parliament passed the stern austerity plan in order to receive the EUR 130 billion bailout, easing market concern to certain extent. Although the pass of austerity plan is a positive progress, market still skeptical whether or not Greece can receive the bailout fund since Greek government still has not reached agreement with its private debt creditors. What is more, market remains uncertain whether nor not Greek will strictly implement the austerity plan. Standard & Poor's cut credit rating of 14 Spanish banks overnight, and Moody's also cut credit rating of several European countries and put AAA credit rating of the UK and France into negative, weighing g down base metal prices.
Market concern over the Greek debt crisis exacerbated, and Moody’s downgrade adjustment of credit rating of several European countries dampened market sentiment. SMM expects that LME tin prices will continue to fluctuate on Tuesday, and may find support at USD 24,000/mt if prices fall below USD 25,000/mt. Mainstream traded prices of spot tin slipped further on Monday, and are expected to decline slightly between RMB 177,500-183,000/mt on Tuesday.