SHANGHAI, May 23 (SMM) – LME tin prices opened at USD 19,450/mt in electronic trading overnight and hit a high of USD 19,880/mt due to the above-expected US home sales data, to finally close up USD 249/mt to USD 19,650/mt, with the lowest price at USD 19, 310/mt. Daily trading volumes were up 162 lots to 485 lots, while positions increased by 312 lots to 19,352 lots. LME tin inventories were up 105 mt to 14,575 mt. Market remained cautious ahead of the EU summit.
Former Greek Prime Minister Lucas Papademos warned May 22 that the risk of Greece leaving the euro zone is “real” and that preparations for the exit are being considered. The impact of Greek default and exit will be profound and will cause a loss a high as EUR 500 billion to EUR 1trillion. In the US, economic data was apparently better than that of Europe recently, combined with the political instability in Europe, investor were more intended to choose US dollars for investments, boosting the US dollar index to touch 81.8, the highest level since September, 2010. Thus, the base metals will be weighed down in the near term.
On Wednesday, domestic tin prices should be between RMB 154,000-156,000/mt.