SHANGHAI, Mar. 7 (SMM) - LME tin market overnight opened at USD 23,240/mt, with the highest and lowest level of USD 23,245/mt and USD 22,305/mt, respectively. Finally, LME tin market closed at USD 22,450/mt, down USD 650/mt from a day earlier. Trading volumes were 365 lots, down by 133 lots. Positions were 18,813 lots, up by 160 lots. Inventories were 11,315 mt, up 90 mt.
LME tin market overnight slid all the way in response to falling stocks and soft euro, depressed by market concerns over economic growth in China and euro zone. LME tin prices fell as low as USD 22,305/mt before finally ending at USD 22,450/mt, down USD 650/mt from a day earlier.
Risk aversion sentiment increased following the news that Greece will delay the debt swap deadline. As the March 8 deadline is near, markets are worried about how many investors will accept a 53.5% write-down on their debt. Once no enough private-sector investors voluntarily take part in debt swap, market sentiment will be dampened, no matter Greece activate collective-action clauses or disorderly default. As a result, US and European stocks tumbled, and LME metals weakened significantly.
No major news is expected to come out today, and the progress of Greek debt swap will dominate market movements in the short term. Markets will remain cautious, and further declines may be prevented. LME tin prices will test USD 22,300/mt. In domestic tin market, spot prices will move towards RMB 170,000/mt, due to sharp declines in LME tin market overnight, with prices expected to between RMB 171,000-173,000/mt, and the low-end deal may be made at RMB 171,000/mt.