SHANGHAI, Jul. 3 (SMM) – With the optimism brought by EU summit fading, LME tin prices, hit by a series of weak manufacturing data, opened at USD 18,850/mt overnight and closed down USD 150/mt from the previous trading day to USD 18,800/mt, with an intraday high of USD 18,950/mt and a low of USD 18,750/mt. Daily trading volumes dropped 248 lots to 299 lots, and positions rose 664 lots to 19,310 lots. LME tin inventories were down 90 mt to 12,170 mt.
As investors were worried about the global growth and actual implementation of the agreement reached at the EU summit, LME base metals closed down generally overnight. ISM Manufacturing PMI for June was 49.7, lower than the expected 52.0, and lower than May’s 53.5, showing a sign of contraction for the first time in about three years. The unexpected contraction of US manufacturing sector reflected the sharp drop of demand within the sector and indicated the unpromising outlook for US economic recovery. The final reading of Euro zone manufacturing PMI was 45.1 in June. Besides, Finland government said European leaders decided last week the bailout funds can be used for stabilizing bond markets, but Finland and Holland with oppose ESM, noting that the framework agreed by European leaders last Friday will bear great risk during the course for implementation. However, the agreement concluded at the summit is expected to pave the way for more loosening monetary policies, and market appetite will grow again if the measures are implemented.
In China’s domestic spot market, tin prices should move between RMB 145,500-147,500/mt on Tuesday.