SHANGHAI, Jun. 19 (SMM) – Market focus returned to the Spanish debt issue with influence from Greek election fading, weighing on metal markets. LME tin prices edged up during Asian trading hours after opening at USD 19,769/mt in electronic trading overnight, but fell to touch a low of USD 19,390/mt and finally closed at USD 19,550/mt, up USD 45/mt from the previous trading day, with highest price at USD 19,800/mt. Daily trading volumes were down 136 lots to 113 lots, while positions were up 211 lots to 19,824 lots. LME tin inventories remained unchanged.
On Monday, the surging yield for Spanish government bond rekindled concerns on European debt crisis and overshadowed the positive news from Greek election. The Spanish government bond yield spurred to above 7%, the highest level since the introduction of euro in 1999, largely raising the country’s financing costs. Market players also fear the Euro zone may not be able to cope with the issue if the European debt crisis will spread to major economies including Spain and Italy. Many investors sold out when metal prices rallied briefly.
In China’s domestic market, tin prices are expected to be RMB 150,000-151,500/mt on Tuesday.