SHANGHAI, Jul. 10 (SMM) – LME tin prices opened at USD 18,600/mt overnight and closed at an intraday high of USD 18,850/mt, up USD 200/mt from the previous trading day, with the lowest price at USD 18,530/mt. Daily trading volumes were down 186 lots to 208 lots, and positions fell 337 lots to 20,163 lots. LME tin inventories were 12,585 mt, down 150 mt.
LME base metals tended to stabilize overnight due to market expectations on the introduction of stimulus plans by the Euro zone and China’s central bank. Market players expected more details on the measures proposed at June’s EU summit to be discussed at the meeting of Euro zone finance ministers. The meeting will further discuss the anti-crisis measures put forward at the EU summit, and should mainly focus on banking regulation, the utilization of Euro zone bailout funds, aids to Spain and Cyprus and whether to make any concession on Greek issue. However, some experts believe the final decision on these matters should take months, while policymakers will be under increasing pressures. Given the depressed market sentiment, investors placed high hopes on the meeting. China’s CPI was reported up 2.2% July 9, showing the slowest growth in 29 months, while the PPI was down 2.1% YoY, presenting downtrend for four months. It is expected China’s central bank may further lower interest rate in 2H this year, and will likely cut RRR in July.
In China’s domestic markets, spot tin prices should be between RMB 148,000-149,000/mt on Tuesday.