SHANGHAI, Jun. 27 (SMM) – LME tin prices opened at USD 18,600/mt in electronic trading overnight and closed at USD 18,602/mt, up USD 2/mt from the previous trading day, with the highest price at USD 18,650/mt and the lowest at USD 18,500/mt. Daily trading volumes were down 49 lots to 125 lots, while positions increased 153 lots to 19,021 lots. LME tin inventories were up 25 mt to 12,250 mt.
LME base metals dropped generally overnight. Market pays close attention to the EU summit scheduled for Thursday and Friday. The differences in interest among EU members and disputes over the financial transaction tax may lead to worse-than-expected result for the summit. Merkel, the Chancellor of Germany worried that the summit will be too focused on the sharing of fiscal liability, indicating the disagreement between Germany and other members. This will likely cause doubt whether the summit will be able to put forward effective measures to resolve the European debt crisis. Thus, the EU summit’s positive influence will be limited and may not help improve the weak trend in base metals.
On Wednesday, China’s domestic tin prices should be between RMB 148,500-150,000/mt.