SHANGHAI, Jul. 17 (SMM) – Since the US retail sales for June fell unexpectedly and investors were uncertain whether Bernanke will announce further easing policy at his testimony, US dollar index fell overnight and LME base metals gained support. LME tin prices opened at USD 18,651/mt overnight and closed at USD 18,750/mt, flat with the previous trading day, with the highest price at USD 18,825/mt and lowest at USD 18,600/mt. Daily trading volumes fell 80 lots to 145 lots, and positions were down 265 lots to 20,455 lots. LME tin inventories were 12,095 mt, down 5 mt.
On Monday, LME base metals increased generally except for copper which edged down. The US retail sales for June were reported down from a month ago, worse than expectations and slipping for the third consecutive month which was last seen in 2008, implying US economic recovery is losing momentum. The decline added to investors’ bet on implementation of QE3, driving down the US dollar index. In China, market also expects the central government will introduce more stimulus measures. At present, base metals found certain support at lower level, should risk appetite keep raising, metal prices will likely test the 30-day moving average. However, as the chairman of the Fed Bernanke will give testimony tonight, the upward room should be limited.
In China’s domestic markets, spot tin prices should be between RMB 147,000-148,500/mt on Tuesday.