SHANGHAI, Jun. 26 (SMM) – Spain formally requested EUR 100 billion bailout fund Monday, and it was reported Moody’s further cut ratings of Spanish banks, dragging down US equities significantly. LME tin prices opened at USD 18,800/mt in electronic trading overnight and fell to a low of USD 18,400/mt to close at USD 18,600/mt, down USD 200/mt from the previous trading day. Daily trading volumes were down 212 lots to 174 lots, while positions fell 3 lots to 18,868 lots. LME tin inventories fell 10 mt to 12,225 mt.
Investors remained cautious before the crucial EU summit scheduled for June 28-29. A draft for the summit earlier revealed EU leaders will discuss seek for new measures to promote economic growth and improve financing environment. Base metal markets will be weighed on if Germany manages to avert the call for loosening fiscal policies. However, if proposals including the Euro zone deposit insurance, Euro bond and ECB balance sheet expansion are adopted, base metal prices may stage a rebound since the implementation of these proposals will need more stimulus plans as support. Most market players held a wait-and-see attitude due to the uncertainties in metal markets.
On Tuesday, China’s domestic tin prices should be between RMB 149,000-150,000/mt.