SHANGHAI, May 29 (SMM) – Spanish stock markets and bond yields were severely impacted due to market concerns over the country’s banking system overnight, while other European stocks and the Euro remained strong as the hopes for Greece to stay in the euro zone rekindled. As such, LME tin prices opened at USD 19,700/mt in electronic trading and ended down USD 10/mt from the previous trading day to USD 19,750/mt, with the lowest price of the day at USD 19,700/mt and the highest at USD 19,950/mt. Daily trading volumes were down 46 lots to 102 lots, while positions increased by 100 lots to 20,226 lots. LME tin inventories were down 70 mt to 13,395 mt.
Greece’s conservatives have regained an opinion poll lead that would allow the formation of a pro-bailout government committed to keeping the country in the euro zone, and the US dollar index fell, driving base metals up. However, the US dollar index rallied to 82.40 as investors were still worried about European economic growth, Spanish banking system and the increasing borrowing costs in some European countries, causing profit-taking by investors, but trading was light since some Europe and US markets were closed for Memorial Day. Although the climbing Spanish bond yields remained a market concern, it was reported China will strengthen its economic stimulus, which may offer certain support to metals markets.
On Tuesday, spot tin prices in China’s domestic market should move between RMB 154,500-155,500/mt.