SHANGHAI, Jul. 11 (SMM) – LME tin prices opened at USD 18,700/mt overnight and hit a low of USD 18,460/mt influenced by China’s weak foreign trade data. Later, market sentiment was moderated since Fitch confirmed the AAA rating of US, and LME tin prices closed at USD 18,661/mt, down USD 189/mt from the previous trading day, with the highest price at USD 18,775/mt. Daily trading volumes were down 29 lots to 179 lots, and positions fell 110 lots to 20,053 lots. LME tin inventories were 12,220 mt, down 365 mt.
Since China’s copper imports fell noticeably and the meeting of Euro zone finance ministers reported no substantial progress. According to data from the General Administration of Customs, China’s imports of unwrought copper and copper product in June were 346,200 mt, down 17.5% MoM, a new low for monthly copper imports, dragging down LME and SHFE copper prices July 10. China is one of the most important refined copper consumers, so a weakness in China’s copper demand is bound to negatively affect global copper prices and, in turn, weigh on other base metals. Euro zone finance ministers announced July 10 the plan to conclude a final deal with Spain on July 20 for providing the first batch EUR 30 billion bailout funds for the country, and the decision to put off the deadline for cutting Spain’s deficit by one year to 2014. Market believes the meeting has been progressing slowly to raise any substantial measures for resolving the European debt crisis. Thus, uncertainties caused concerns and prevented base metals from picking up.
In China’s domestic markets, spot tin prices should be between RMB 147,500-149,000/mt on Wednesday.