SHANGHAI, May 11 (SMM) -- LME tin for delivery in three months opened at USD 21,836/mt and closed at USD 21,505/mt overnight, down by USD 75/mt from a day earlier, with the highest price at USD 21,950/mt and the lowest price at USD 21,505/mt. Daily trading volumes were 341 lots, up by 16 lots. Positions were 23,161 lots, up by 115 lots from a day earlier. LME tin inventories were 12,235 mt, up 60 mt from a day earlier.
LME tin prices extended declines and hit a low at USD 21,505/mt at the Asian trading hours. During the late trading hours, LME tin pared certain losses and closed at USD 21,750/mt, down USD 75/mt from a day earlier. The Standard & Poor's cut credit rating of Spain, weighing on the euro and base metal prices.
Base metal prices all closed with losses overnight. Prices of lead and zinc fell most remarkably overnight. The Standard & Poor's cut credit rating of Spain from BBB+ to BBB-, and added that further credit rating cut is possible if no progress is made to stabilize its economy and politic. Although ESM and EFSF president Klaus Regling said that the stronger compositeness and reduced deficit suggested progress in the European debt crisis, this was not enough to boost market confidence. The sluggish consumption amid exacerbated concern over the European debt crisis weighed on base metal prices.
Market sentiment is still bearish and the US dollar is supported by risk aversion sentiment, which will weigh on base metal prices. LME tin prices will find certain support at 20-day moving average and shall test sustainability there. In the Shanghai tin spot market, spot tin prices may move in the RMB 156,000-159,000/mt on Thursday.