SHANGHAI, Oct. 10 (SMM) – LME tin prices opened at USD 22,061/mt and closed at USD 21,825/mt, down USD 295/mt from a day earlier, with the intraday high at USD 22,205/mt and the low at USD 21,800/mt. Daily trading volumes were 325 lots, down 12 lots. Positions were 23,046 lots, down 57 lots. LME tin inventories were 12,175 mt, flat from a day earlier.
LME tin prices slipped after advancing slightly during the Asian trading hours and meeting resistance at 10-day moving average during the Asian trading hours. Later, LME tin prices continued to slip and closed at USD 21,825/mt amid bearish sentiment. Finally, LME tin prices closed at USD 21,825/mt, down USD 295/mt from a day earlier.
LME base metal prices slightly fell overnight due to increased concern over market outlook. The IMF forecasted at a report that the euro zone economy growth will shrink by 0.4% in 2012 and will contract by 0.3% in July, and cut economic growth forecast for 2013 from 0.7% to 0.2%. The ECB president Mario Draghi said that there is still a long road before the euro zone economic outlook turns positive. He then added that there were no alternatives for budget cut plan. Investors concerned that the base metal performance will be negatively affected by global economic weakness. In response, they exited from risk assets market and turned to the US dollar as a safe haven. It is expected that uncertainties over the European debt crisis will cloud base metal price outlook.
SMM expects that LME tin prices will find support at USD 21,500/mt amid bearish sentiment and spot tin prices will continue to slip between RMB 157,000-160,000/mt on Wednesday.