SHANGHAI, May 18 (SMM) – Since US economic data was reported disappointing and Fitch downgraded Greece’s rating, LME tin prices overnight opened at USD 19,600/mt in electronic trading and closed down USD 450/mt to USD 19,250/mt. The highest price was at USD 19,850/mt and lowest was at USD 19,200/mt. Positions were up 737 lots to 19,439 lots.
Fitch downgraded Greece’s rating to CCC from B-, reflecting the possibility of Greece exit from the euro zone, which may in turn cause massive defaults. This also compounded investors concerns over the European debt crisis. Meanwhile, the US dollar index increased for 13 consecutive days to 81.59, the longest rally since 1973, weighing on base metals. SMM believes the US dollar index is not expected to retreat in the short term, combined with the negative market outlook, US dollar index may rise further, and base metal prices will not likely increase remarkably in the near term if other economic factors show no improvements.
On Friday, domestic spot tin prices are expected to be between RMB 153,000-156,000/mt.