SHANGHAI, Jul. 23 (SMM) –LME tin prices opened at USD 19,050/mt last Friday and hit a low of USD 18,861/mt to finally close at USD 18,900/mt, down USD 200/mt from the previous trading day, with the intraday high at USD 19,100/mt. Daily trading volumes fell 137 lots to 163 lots, and positions were up 251 lots to 19,660 lots. LME tin inventories were unchanged at 11,715 mt.
On July 20, LME metal markets fell generally with three month copper down as much as 2%. Since Valencia asked for aids from central government of Spain, the 5-year and 10-year bond yields in Spain surged to a euro-era record, triggering concerns about Spain’s ability to stave off a sovereign bailout. Spanish government cut the country’s projected economic growth for the next two years, weighing on the euro. Last week, the European debt market continued deteriorating, bond yields in Germany turned negative, while the 10-year bond yield in Spain to hit a new high of 7.18%. Thus, market focus was again attracted by the European debt issues, adding to risk aversion in the market. The US dollar index rose above 83. Metals are expected to keep falling if the European debt issues continue to exacerbate.
In China’s domestic markets, spot tin prices should remain between RMB 146,500-148,000/mt on July 23.