SHANGHAI, Apr. 12 (SMM) – LME tin prices opened at USD 22,600/mt and closed at USD 22,400/mt overnight, down USD 225/mt from the previous trading day, with the highest price at USD 22,850/mt and the lowest price at USD 22,400/mt. Daily trading volumes were 182 lots, up 72 lots. Positions were 19,133 lots, down 441 lots from a day earlier. LME tin inventories were 13,150 mt, up 105 mt.
During Asian trading session, LME tin prices fell briefly but later rallied to USD 22,850/mt due to the news of 8.9 magnitude quake in Indonesia. However, prices were weighed down by negative economic conditions. Despite the satisfactory results for Spanish and Italian bonds auction, LME tin prices finally closed down USD 225/mt to USD 22,400/mt.
Major financial market started to stabilize overnight, but the Fed still did not give any clear directions to its monetary policy. The Fed said in the Beige Book business survey that the economy continued to expand at a modest to moderate pace from mid-February through late March. Many regions saw growth in manufacturing sector with optimism among producers in general. However, the concerns over energy costs and the signal of worsening European debt crisis gave support to the US dollar index. Coupled with the worse-than-expected US nonfarm payrolls which reflected the slow economic recovery in the US, base metals movements are expected to be limited by international conditions and weighed down by the strong US dollar index.
On Thursday, spot tin prices in China’s domestic market should be between RMB 167,000-170,000/mt.