SHANGHAI, May 24 (SMM) – Since market concerns over Greek exit still existed and the US dollar index continued to rise on risk aversion, LME tin prices opened at USD 19,650/mt in electronic trading overnight and fell to a intraday low of USD 19,270/mt, to finally close at USD 19,550/mt, down USD 100/mt. Daily trading volumes were down 121 lots to 364 lots, while positions increased by 200 lots to 19,552 lots. LME tin inventories were down 580 mt to 13,995 mt.
EU leaders’ meeting failed to achieve any substantial progress, adding to risk aversion. Thus, global financial markets declined in general, with the Euro fell against the Dollar below 1.2600 to a 22 month low and the US dollar index hitting a high of 82. The European Central Bank was stepping up efforts to prepare for a potential Greek exit. It was expected Greece would finally leave the euro zone due to the disagreement among EU leaders. In this context, the global financial market will tumble and base metals continue the weak trend.
On Thursday, domestic tin prices should be between RMB 154,000-155,500/mt.