SHANGHAI, Jun. 20 (SMM) – Market concerns over the European debt crisis remained, but investors focused on the Fed’s meeting and expected the implementation of further stimulus measures. Thus, LME tin prices moved narrowly between USD 19,500-19,600/mt after opening at USD 19,550/mt in electronic trading overnight, but later regained some earlier losses to close at USD 19,600/mt, up USD 50/mt from the previous trading day. The highest price of the day was USD 19,625/mt and the lowest was USD 19,445/mt. Daily trading volumes were up 25 lots to 138 lots, while positions were down 976 lots to 18,848 lots. LME tin inventories fell by 5 mt to 12,175 mt.
Although market risk was elevated by the spurring Spanish government bond yield, base metals edged up during European trading hours due to positive reports from the G20 summits and optimistic expectations on the Fed’s meeting. Market expects chances for the implementation of QE3 this are not high, but Operation Twist is likely to be extended, and the Fed should introduce more liquidity measures. As such, the US dollar index was weighed down.
In China’s domestic market, tin prices are expected to be RMB 150,000-151,500/mt on Wednesday.