SHANGHAI, Jul. 13 (SMM) – Market was not optimistic to China’s economic data to be unveiled Friday, coupled with lower expectations on Fed’s introduction of QE3, the US dollar index staged a strong trend overnight, dragging down LME tin prices. LME tin prices opened at USD 18,751/mt overnight closed at USD 18,501/mt, down USD 399/mt from the previous trading day, with the highest price at USD 18,800/mt and lowest at USD 18,500/mt. Daily trading volumes fell 11 lots to 246 lots, and positions were up 320 lots to 20,880 lots. LME tin inventories remained unchanged at 12,210 mt.
LME base metals fluctuated narrowly overnight with market awaiting China’s GDP data for the second quarter to be released Friday. Market expectations are that China’s GDP growth between April and June should slip to a low last seen in 1Q 2009, representing a trough of the current economic slowdown. If China’s GDP growth continues to weaken, metal market will be hit significantly. Besides, Moody’s lowered rating for Italy’s government bond from A3 to Baa2 and remained a negative outlook. The rating agency said the tough situations in Spain and Greece which further depressing market confidence should be blamed for this downgrade, and there is a risk for the spread of the crisis in Spain and Greece.
In China’s domestic markets, spot tin prices should be between RMB 147,500-149,000/mt on Friday.