SHANGHAI, Oct.9 (SMM) -- LME nickel for delivery in three months opened at USD 22,300/mt and closed at USD 22,120/mt, down USD 230/mt from a day earlier, with the intraday high at USD 22,301/mt and the low at USD 21,900/mt. Daily trading volumes were 23,103 lots, up 207 lots. Positions were 12,175 lots, flat from a day earlier.
LME tin prices slipped all the way to hit USD 22,000/mt during Asian trading hours due to decline in Shanghai Composite Index. During the European trading hours, as no progress was reported from the euro zone financial ministers meeting, LME tin prices fluctuated. Finally, LME tin prices closed at USD 22,120/mt, down USD 230/mt from a day earlier.
LME base metal prices fell across the board overnight as market concerned that the Federal Reserve may cease to implement QE3 in advance and economic outlook may be gloomy. The World Bank lowered economic growth forecast of East Asia and Pacific regions and China’s economic slowdown may last a long time, which weighed on market sentiment. At Monday’s euro zone financial ministers meeting at Luxembourg, Italy’s finance minister Grilli said that it had no plan to give financial aid. Germany’s finance minister Wolfgang Schauble was also unwilling to lend support for Spain. Dutch finance minister was opposed that bonds write-down, reform and deficit cut are best solution to solve the debt crisis. In addition, the Germany’s reasonably adjusted industrial output fell by 0.5% in August, and annualized industrial output fell by 1.4%. Furthermore, the Chicago PMI fell below 50 for the first time since September 2009. These all weighed down LME base metal prices.
SMM expects that LME tin prices will move around USD 22,000/mt and Shanghai tin spot prices will move in the RMB 157,500-160,500/mt on Tuesday.