SHANGHAI, Jun. 14 (SMM) – LME tin prices opened at USD 19,575/mt in electronic trading and followed a weak trend overnight due to the poor US economic data and Moody’s downgrade of Spanish rating. LME tin prices finally closed at USD 19,500/mt, down USD 199/mt from the previous trading day, with the lowest price at USD 19,450/mt and the highest at USD 19,675/mt. Daily trading volumes were down 130 lots to 114 lots, while positions were up189 lots to 19,242 lots. LME tin inventories remained at 12,045 mt.
LME base metals closed down since the downgrade of Spanish rating and Merkel’s remarks depressed market confidence. Moody’s Investors Service downgraded Cyprus’s government bond ratings by two notches to BA3 from BA1, and placed the ratings on review for further possible downgrade. Meanwhile it also downgraded Spain’s government bond rating to BAA3 from A3, and placed it on review for possible further downgrade. In addition, German Chancellor Angela Merkel reiterated that Eurobonds would be no solution to the debt crisis, compounding market concerns over the European debt issue. Investors may remain cautious and wait for the result of the much focused Greek election.
On Thursday, tin prices in China’s domestic market are expected to be RMB 151,500-152,500/mt.