SHANGHAI, Jun. 28 (SMM) – US equity markets were buoyed overnight due to news that the Euro zone may lower interest rate. The US Durable Goods Orders for May also staged a rally following three months’ of drop. As such, LME tin prices opened at USD 18,350/mt and closed up USD 23/mt from the previous trading day to USD 18,625/mt, with the high-end price at USD 18,700/mt. Daily trading volumes were up 18 lots to 143 lots, and positions fell 59 lots to 18,962 lots. LME tin inventories dropped 10 mt to 12,240 mt.
On Wednesday, the conflicts among Germany, France and Italy before the EU summit caused market doubts over the result of the summit, limiting rally in base metals. It was reported Merkel strongly opposed the introduction of euro bond. According to a latest poll, 79% German respondents object to the issuance of euro bond. The bond market in Spain remains a market focus. Spain’s 10-year government bond yields climbed to 7%, greatly lifting the country’s financing cost. Besides, Fitch ratings agency says it has downgraded Cyprus’ sovereign credit grade to junk status. The country has formally applied for EU bailout funds. The US dollar index stayed at a high level for the past few weeks and was still favored by investors. Although LME base metals rebounded marginally due to the US economic data, market was still under pressures given the surging Spanish bond yields and the doubts over the EU summit.
On Thursday, China’s domestic tin prices should be between RMB 147,500-149,500/mt.