SHANGHAI, Jun. 7 (SMM) – It was reported Germany and EU leaders were actively searching for ways to bail out the indebted Spanish banks, buoying European and US equities and depressing the US dollar index. In response, LME tin prices opened lower at USD 19,600/mt in electronic trading overnight and closed at USD 19,700/mt after touching a high of USD 19,887/mt, up USD 350/mt from the previous trading day, with the lowest price at USD 19,500/mt. Daily trading volumes were down 30 lots to 226 lots, while positions fell by 237 lots to 20,197 lots. LME tin inventories were down 505 mt to 12,855 mt.
On Wednesday, the European Central Bank the interest rates unchanged at 1%, within market expectation. However, ECB chief Mario Draghi said a few members would have preferred to have a rate cut, implying that ECB leaders were willing to moderate policies. Meanwhile, Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, said that additional monetary easing policy should be considered if a wobbly US economy falters or European crisis triggers a further financial turmoil. The remarks concerning to stimulus policies caused investors to sell safe havens of US Treasury and US dollar, and promoted prices for commodities including crude oil and base metals.
On Thursday, tin prices in China’s domestic market are expected to be RMB 151,500-153,500/mt.