SHANGHAI, Apr. 5 (SMM)-LME tin market overnight opened at USD 23,000/mt, with the highest and lowest level of USD 23,000/mt and USD 22,515/mt, respectively. Finally, LME tin market closed at USD 22,600/mt, down USD 500/mt from a day earlier. Trading volumes were 218 lots, down by 88 lots. Positions were 19,461 lots, up by 172 lots. Inventories were unchanged at 13,285 mt.
LME tin market overnight weakened following dollar rises from reignited concerns over the European debt issues. LME tin market slid to USD 22,515/mt before settling at USD 22,600/mt, down USD 500/mt from a day earlier.
During the Qingming Festival holiday, LME base metals market staged price oscillation. In China, the PMI released by CFLP continued to improve, but the reading from HSBC dropped, indicating mixed business activity at large and small enterprises. In the euro-zone area, the PMI remained below 50. In the US, the Federal Reserve’s meeting minutes against dashed market hopes for the third round of quantitative easing policy. In addition, the Spain’s bond auction sales were weaker than market expected, and the yielding for the country’s 10-year bonds surged to a high of 5.60% not seen since earlier January this year. On April 4th, financial markets came under downward pressure, the euro dropped, and European and US equities weakened, depressing LME base metals market.
With mixed market news, market remains under downward pressure. LME tin market will continue to fluctuate narrowly, with price band expected between USD 22,100-23,000/mt. In domestic tin market, prices are expected to be stable along with limited changes in LME tin market and no significant changes in market fundamentals, with prices expected between RMB 169,500-170,500/mt.