SHANGHAI, Mar. 20 (SMM) -- LME tin prices for delivery in three months opened at USD 23,450/mt and closed at USD 23,600/mt overnight, up USD 225/mt from a day earlier, with the highest price at USD 23,600/mt and the lowest price at USD 23,200/mt. Daily trading volumes were 149 lots, down 78 lots. Positions were 19,099 lots, down 263 lots. LME tin inventories were 11,555 mt, down 15 mt from a day earlier.
LME tin prices extended weak momentum and drifted lower to hit USD 23,200/mt during Monday’s Asian trading hours, but pared early losses to close USD 255/mt higher at USD 23,600/mt during the US trading hours on upbeat economic data from the US and from euro gains.
The Greek credit default swaps (CDS) auction was completed on Monday, settling at 21.5%, or a discount of 78.5% to face value, reducing market concern over implementation of the second round Greek bailout plan. In response, the euro gained upward momentum and advanced slightly. In addition, lower-than-expected readings on US manufacturing exerted downward pressure on the US dollar. The weakening US dollar will help boost base metal prices. In response, LME base metal prices advanced overnight. However, players' concern over financial conditions in Portugal and Spain capped gains of LME base metal prices.
No negative news is expected to be released from the euro zone in the short term, which will support euro. At present, market sentiment is positive, and impact from Fed’s interest rate meeting is waning. In addition, the US dollar is weak in the short term. SMM expects that LME tin prices will continue to fluctuate. Spot tin prices will fall slightly to RMB 171,500-173,500/mt, despite of LME tin price hike overnight.