SHANGHAI, May 28 (SMM) –LME tin prices followed fluctuated weakly last Friday since Spain’s Catalonia was reported in need of financing help from the central government because it is running out of options for refinancing debt and since S&P downgraded ratings for several Spanish banks. LME tin prices opened at USD 19,890/mt in electronic trading and ended down USD 110/mt to USD 19,760/mt, with the lowest price of the day at USD 19,700/mt and the highest at USD 19,900/mt. Daily trading volumes were down 148 lots to 148 lots, while positions increased by 460 lots to 20,126 lots. LME tin inventories were down 160 mt to 13,465 mt.
The Michigan Consumer Confidence Index was reported at 79.3 in May, a new high since October, 2007, and above the expected 77.8 and 77.8 recorded during the previous month. Negative news from the euro zone remains the major factor influencing the market. The possible Greek exit and financial troubles at Spanish banks, combined with the fresh concerns over Spanish debt financing, sending risk appetite down sharply. In response, base metals dropped rapidly with the US dollar index renewing 20-month record. The weak trend of base metals forced many producers to halt sales, which become the most important support to base metals prices. As markets in the US will be closed for holiday on Monday, financial market may not experience volatile fluctuations.
On Monday, spot tin prices in China’s domestic market should move between RMB 154,000-155,500/mt.