SHANGHAI, Jul. 6 (SMM) – The interest rate cuts of ECB and China’s central bank raised market concerns over the slower industrial demand, driving the US dollar index up and weighing on base metals, and the optimistic economic data in the US failed to boost the market. As such, LME tin prices opened at USD 18,941/mt overnight and closed at USD 18,900/mt, down USD 201/mt from the previous trading day, with an intraday high at USD 19,200/mt and the lowest price at USD 18,890/mt. Daily trading volumes were up 413 lots to 520 lots, and positions rose 791 lots to 20,264 lots. LME tin inventories were 12,605 mt, up 25 mt.
On Thursday, market was cautious due to the uncertain economic situations with LME base metals down slightly, but the moves by several central banks triggered market expectations on easing liquidity. China’s central bank announced unexpectedly Thursday it will reduce the benchmark interest rate for one-year deposits by 25 basis points and that for one-year lending by 31 basis points starting July 6. ECB also announced to lower its interest rate by 25 basis points to 0.75%. Besides, the Bank of England declared to keep its rate unchanged at 0.5%, but it will expand the quantitative easing by GBP 50 billion. These actions reflected the determinations for the central banks to stimulate growth.
In China’s domestic markets, spot tin prices should be between RMB 148,000-149,000/mt on Friday.