SHANGHAI, Mar. 9 (SMM) -- LME tin prices for delivery in three months opened at USD 22,245/mt and closed at USD 22,765/mt overnight, up USD 693/mt from a day earlier, with the highest price at USD 22,990/mt and the lowest price at USD 22,125/mt. Daily trading volumes were 342 lots, down 8 lots. Positions were 18,713 lots, down 280 lots. LME tin inventories were 11,545mt, up 85 mt from a day earlier.
LME tin prices fluctuated narrowly during Thursday’s Asian trading hours, but advanced to hit at high at USD 22,990/mt and hovered at high level during European and US trading hours. Finally, LME tin prices closed at USD 22,765/mt, up USD 693/mt from a day earlier. The optimistic expectation over Greek debt swap deal supported LME tin prices, but cautious remark by ECB’s President Mario Draghi on eurozone economy capped gains of LME tin prices.
Although it lacked news on development of Greek debt swap from officials, it was reported around 95% creditors agreed to participate in the Greek debt swap deal, which was better than market expectation. In response, market sentiment was boosted, sending stock markets higher in the Europe and the US and allowing LME base metal prices to close with gains. China will release a slew of important economic data for February on Friday. It is widely expected in the market that CPI may fall to around 3%, which lends support for policy-makers to adjust monetary policy. It is also expected that China’s bank requirement reserve ratio shall be cut further in 2012, which will ease tight liquidity and support base metal prices. Meanwhile, the US will release February non-farm employment report on Friday night, and market players expect that employment will improve slightly in the US.
SMM expects that optimistic expectation over China’s CPI and the US non-farm employment data will support LME tin prices to move in the RMB 22,000-23,000/mt range on Friday. In spot tin market, overnight LME tin price increase will prevent spot tin prices from falling further and shall move in the RMB 169,500-172,000/mt range on Friday.