SMM Morning Review - 2012/2/21 Tin Market

SHANGHAI, Feb. 21 (SMM) -- LME tin for delivery in three months opened at USD 23,600/mt and closed at USD 23,800/mt overnight, up by USD 297/mt from a day earlier, with the highest price at USD 24,349/mt and the lowest price at USD 23,450/mt. Daily trading volumes were 250 lots, down by 239 lots. Positions were 19,006 lots, down by 59 lots from a day earlier.LME tin inventories were up by 85 mt to 10,080 mt.

LME tin prices fluctuated lower after a high opening overnight. LME tin prices fell after advancing to USD 24,349/mt during Monday’s morning trading hours, and fluctuated narrowly above USD 23,500/mt during the evening trading hours. Finally, LME tin prices closed at USD 23,800/mt, up USD 297/mt from a day earlier.

In the eurozone, players closely watched latest development of the Greek debt issue which was discussed at overnight European financial ministers meeting, and widely expected that agreement can be reached at the meeting. Amid optimism, related markets in the euro zone were boosted. Coupled with China central bank’s cut in bank requirement reserve ratio, LME base metal prices largely closed with gains overnight.

It is expected that market optimism will be curbed to certain extent as the European financial ministers meeting has not released the final result yet. SMM expects that LME tin prices will remain fluctuation trend before release of meeting outcome, and shall be supported at USD 23,000/mt on Tuesday. In China’s domestic tin spot market, supply and demand of tin were both sluggish. Coupled with unclear tend of LME tin price, SMM expects that spot tin prices will continue to fluctuate weakly between RMB 172,000-178,000/mt on Tuesday.