SHANGHAI, Jul. 19 (SMM) – LME tin prices opened lower at USD 18,760/mt overnight due to the disappointing report by Bernanke, chairman of the Fed, but rallied later under the influence of strong US Housing Starts data and rising equity markets. LME tin prices closed at USD 18,750/mt, down USD 190/mt from the previous trading day, with the intraday high at USD 18,850/mt and a low of USD 18,650/mt. Daily trading volumes fell 103 lots to 186 lots, and positions were down 152 lots to 19,316 lots. LME tin inventories were 11,915 mt, down 40 mt.
Since the Fed’s chairman Bernanke did not send clear signal on QE3 measures during his monetary policy report, market turned pessimistic toward economic prospects. The Fed believes the current economic data was not enough to prompt QE3 measures, disappointing market, but it also pointed out the possibility of implementing another round of QE policy in the future. Thus, metal markets rallied after falling initially. Market sentiment did not deteriorate without further negative news on from the euro zone. Meanwhile, the US Housing Starts for June hit the highest level since October 2008, with permits to build single-family homes reaching their highest point since April 2010, also driving metal prices to stabilize.
In China’s domestic markets, spot tin prices should be between RMB 147,000-148,500/mt on July 19.