SMM Morning Review - 2012/5/16 Tin Market

SHANGHAI, May 16 (SMM) – LME tin prices overnight opened at USD 20,170/mt in electronic trading and closed at USD 19,950/mt, down USD 320/mt from the previous trading day, with the highest price at USD 20,300/mt and lowest at USD 19,825/mt. Positions were up 336 lots to 19,171 lots.

Greece’s attempts to form a ruling coalition government broke down Tuesday, and the country is expected to hold a new election. IMF chief Christine Lagarde said it was important to be technically prepared for the possibility of Greece leaving the euro zone, warning that such a move would be “quite messy” with risks to growth, trade and financial markets. In response, market players were preparing for the exit of Greece from the euro zone, with the US dollar buoyed by investors’ buying activity. In this context, base metals will be weighed down.

On Wednesday, domestic spot tin prices are expected to be between RMB 155,500-169,000/mt.