SHANGHAI, Jul. 12 (SMM) – LME tin prices opened at USD 18,699/mt overnight and hit a high of USD 18,980/mt supported by dip buying to finally close at USD 18,900/mt, up USD 239/mt from the previous trading day. Daily trading volumes rose 78 lots to 257 lots, and positions were up 507 lots to 20,560 lots. LME tin inventories were 12,210 mt, down 10 mt.
Spain announced its new fiscal measures overnight, with the budget during the next 2½ years totaling EUR 65 billion, raising risk appetite. Meanwhile, the Federal Reserve released FOMC minutes for June which suggested several of the members agreed on the necessity for introducing further stimulus policies for US. However, many believed further easing policies are only needed when economic recovery is in lack of momentum and facing downward risk or when inflation is at risk of continuous falls below targeted level. Most Fed’s officials considered the current “Operation Twist” appropriate, leaving lower expectations on QE3. The US dollar index remained firm. Metal markets remained cautious and mainly eyed on the release of China’s 2Q GDP on Friday.
In China’s domestic markets, spot tin prices should be between RMB 147,500-149,000/mt on Thursday.