SHANGHAI, Mar. 29 (SMM) -- LME tin market overnight opened at USD 22,450/mt, with the highest and lowest level of USD 22,550/mt and USD 22,325/mt, respectively. Finally, LME tin market closed at USD 22,420/mt, down USD 75/mt from a day earlier. Trading volumes were 176 lots, up 53 lots. Positions were 19,203 lots, up 66 lots. Inventories were 12,950 mt, up 140 mt.
LME tin prices moved around USD 22,400/mt yesterday due to plummeting Chinese stock markets, weaker-than-expected US economic data and Goldman Sachs’ pessimistic remarks, with prices finally closing at USD 22,420/mt, down USD 75/mt.
SHFE and LME metals prices dipped yesterday dragged down by plummeting Chinese stock markets. In addition, Moody's cut the credit ratings of five Portuguese banks on Wednesday, saying their asset quality and profitability were expected to deteriorate amid Portuguese economic downturn, helping push up US dollar index. The exit of speculative funds from commodity market drove metals prices down, with no positive signs seen in the metal market. European and US stocks closed down overnight and LME base metal prices dipped as well.
Chinese stocks plummeted yesterday, further eroding market expectations on China’s demand. Combined with weak economic data from Europe and US, SMM predicts LME tin prices will remain weak and find support at USD 22,000/mt today. In the domestic market, spot tin prices will remain stable between RMB 169,500-170,500/mt.