SHANGHAI, Jun. 25 (SMM) – The European Central Bank announced to ease collateral requirements to enhance financing access of the Euro zone financial system, bolstering equities and buoying base metals. LME tin prices opened at USD 18,600/mt in electronic trading last Friday and fell to a low of USD 18,300/mt as Moody’s cut ratings of 15 large banks. LME tin prices closed at USD 18,800/mt, flat with the previous trading day. Daily trading volumes were down 20 lots to 386 lots, while positions increased by 399 lots to 18,871 lots. LME tin inventories fell by 130 mt to 12,235 mt.
SHFE market was closed last Thursday and Friday, LME base metals presented a weak trend during the two days. The kept slowing global economy and the unresolved European debt crisis depressed market sentiments. Moody’s downgraded ratings of 15 large banks including Morgan Stanley and Goldman Sachs, and assigned negative outlooks on 9 of the banks. Moody’s explained that all of the banks affected by the downgrade have significant exposure to the volatility and risk of outsized losses inherent to capital markets activities. In this context, pessimism prevailed in the market with risk appetite dropping sharply. However, metal markets are expected to ease somewhat after the plunge in May.