SHANGHAI, March 30 (SMM) – LME tin for delivery in three months opened at USD 22,500/mt and closed at USD 22,630/mt overnight, up USD 210/mt from a day earlier, with the highest price at USD 22,700/mt and the lowest price at USD 22,225/mt Daily trading volumes were 176 lots, flat from a day earlier. Positions were 19,283 lots, up 80 lots. LME tin inventories were 12,925 mt, down 25 mt from a day earlier.
LME tin prices advanced slightly during Friday’s Asian trading hours ,but fell later to hit a low at USD 22,225/mt during the European trading hours. However, boosted by remark by Germany’s financial minister, LME tin prices pared certain losses to hit USD 22,700/mt. Finally, LME tin prices closed at USD 22,630, up USD 210/mt from a day earlier.
Economic data for March released from the euro zone on Thursday were relatively weak. In addition, the Kansas Fed Manufacturing Index for March also slipped. The downbeat economic data weighed on base metal prices to certain extent. However, boosted by rally of the Dow Jones Industrial Average Index and remark from Germany’s financial minister that the 17 bloc financial ministers will discuss the firewall on Friday and may expand scale of ESM (European Stability Mechanism) from EUR 500 billion to EUR 800 billion, confidence in base metal market was lighten to certain extent. In this context, LME base metal prices closed mixed overnight.
Since competition between shorts and longs remains fierce, SMM expects that LME tin prices will continue to fluctuate, with support at USD 22,000/mt and resistance at USD 22,800/mt on Friday. In the Shanghai spot tin market, production costs and limited supply from smelters will support spot tin prices to move stably between RMB 169,500-170,500/mt on Friday.