SHANGHAI, Jul. 2 (SMM) – Last Friday, the result of EU summit eased concerns over the European debt crisis, buoying LME tin prices. As such, LME tin prices opened at USD 18,500/mt overnight and closed up USD 350/mt from the previous trading day to USD 18,950/mt, with an intraday high of USD 18,950/mt and a low of USD 18,500/mt. Daily trading volumes were up 336 lots to 547 lots, and positions fell 254 lots to 18,646 lots. LME tin inventories were up 20mt to 12,260 mt.
The EU released its statement on the summit June 29, affirming the importance of breaking the vicious circle between banks and sovereigns and the possibility to recapitalize banks directly. EU leader agreed to take emergency action to control to climbing bond yields in Spain and Italy. Besides, a single supervisory mechanism for European banking sector will be established by the end of 2012. In this context, market appetite rose significantly.
On Monday, China’s domestic tin prices should be between RMB 146,000-148,000/mt.