SHANGHAI, Oct. 8 (SMM) -- LME tin for delivery in three months opened at USD 22,550/mt and closed at USD 22,350/mt, down USD 150/mt from a day earlier, with the intraday high at USD 22,620/mt and the low at USD 22,350/mt. Positions were up 1,407 lots to 22,896 lots. LME tin inventories were 12,175 mt, up 120 mt from a day earlier.
LME tin prices largely fluctuated around USD 22,500/mt during last Friday’s Asian trading hours. However, during the late trading hours, LME tin prices fell to hit a low at USD 22,350/mt and closed at USD 22,350/mt, down USD 150/mt from a day earlier. The US nonfarm employment data boosted market confidence. It was reported that US employment hit a four year low at 7.8%. However, the euro zone debt crisis still did not report significant progress, weighing down market sentiment.
LME base metal prices largely fluctuated narrowly as no significant progress was reported on the Greece and Spanish debt crisis. Data from the US Department of Labor revealed that the US nonfarm employment data for August was up 142,000, which was higher than market expectation. Meanwhile, the US unemployment rate rapidly to 7.8%, far lower than 8.2% expected, the lowest since January 2009. The positive unemployment data dampened market expectation that the Fed Reserve will introduce more monetary policy to boost economy. In response, the US dollar advanced.
Upward momentum of LME tin prices has waned to certain extent and SMM expects that LME tin prices will find support at USD 22,000/mt and meet resistance at USD 22,900/mt. Shanghai spot tin prices will move in the RMB 160,000-163,000/mt range on Monday.