SHANGHAI, Feb. 16 (SMM) -- LME tin for delivery in three months opened at USD 24,695/mt and closed at USD 24,600/mt overnight, up by USD 100/mt from a day earlier, with the highest price at USD 24,850/mt and the lowest price at USD 24,250/mt. Daily trading volumes were 345 lots, down by 66 lots. Positions were 19,334 lots, down by 78 lots from a day earlier.LME tin inventories were down by 120 mt to 9,180 mt.
Boosted by China's central bank president Zhou Xiaochuan’s statement that China will expand investment and will increase reserves of euro, LME tin prices advanced slightly during Wednesday's Asian trading hours. However, during the European trading hours, LME tin prices were on downward track again and hit a low at USD 24,250/mt, which was due to report that the Greek bailout is facing more difficulties and also a result of stronger US dollar. Finally, LME tin prices closed USD 100/mt from a day earlier.
The euro zone financial ministers’ telephone conference did not come up with substantial progress. According to report, the financial ministers in the euro zone were considering to postpone the second round of Greek Bailout. In addition, the Greek people were unwilling to accept the stern conditions proposed by other euro zone countries. Greece still faced many challenges in receiving financial aid, weighing on market sentiment. In response, the US dollar advanced, and LME base metal prices largely closed with losses overnight.
It is expected that the market will remain cautious and LME tin prices shall fluctuate weakly before outcome of the second round Greek bailout plan, with support at USD 24,000/mt. In China’s spot tin market, spot tin prices are expected to remain stable between RMB 176,000-181,500/mt on Thursday as LME tin prices receive certain support and since demand for spot tin is quiet.