SHANGHAI, May 30 (SMM) – LME tin prices were relatively firm overnight despite the lower-than-expected US Consumer Confidence Index and the remaining unfavorable situation in Spain. LME tin prices opened at USD 19,800/mt in electronic trading and ended up USD 275/mt from the previous trading day to USD 20,025/mt, with the lowest price of the day at USD 19,775/mt and the highest at USD 20,249/mt. Daily trading volumes were up 170 lots to 272 lots, while positions decreased by 56 lots to 20,170 lots. LME tin inventories were down 40 mt to 13,355 mt.
The US Consumer Conference index fell to 64.9 this month from a revised 68.7 in April, and lower than market expectation. Meanwhile, US Dallas Fed Manufacturing Output Index in May was 5.5, lower than expected 5.6. Therefore, base metals surrendered earlier gains and presented a quick drop. Later, market sentiment was further depressed as Egan-Jones slashed Spain’s rating to BB- from B, causing the US dollar index to hit a new high of 82.61. Given the political upheaval in Greece and the worsening situation of Spanish banking system, market feared the European debt issue may threaten global economic recovery. The strong spike of the US dollar index leaves base metals under resistance.
In China’s domestic spot markets, tin prices should be between RMB 154,500-155,500/mt on Wednesday.