SHANGHAI, Oct.12 (SMM) -- LME tin for delivery in three months opened at USD 21,821/mt and closed at USD 22,000/mt overnight, up by USD 250/mt from a day earlier, with the intraday high at USD 22,200/mt and the lowest price at USD 21,610/mt. Daily trading volumes were 349 lots, up by 8 lots. Positions were 22,985 lots, down by 176 lots from a day earlier. ME tin inventories were 12,240 mt, up 5 mt from a day earlier.
LME tin prices largely moved stably and only slipped to hit at low at USD 21,610/mt during the Asian trading hours. However, LME tin prices advanced during the European trading hours on expectation that Spain may ask for financial aid following the Standard & Poor's cut of its credit rating. LME tin prices finally closed at USD 22,200/mt, up USD 250/mt from a day earlier.
According to data from Elstat, the Greece unemployment rate rose to 25.1% in August from 24.8% in July. Greek economy has contracted for five consecutive years, and the country is waiting for assessment result on financial aid from the EU, IMF and ECB. Meanwhile, as the Standard & Poor's cut Spanish long-term credit rating, possibility for Spain to ask for financial aid would be high. In this context, investors were relatively optimistic, pushing up the euro and European stock index. According to data from the US Department of Commerce, last week's initial jobless claim fell by 30,000 to 339,000, which is the lowest since February 2008, suggesting that the US employment market greatly improved. Coupled with higher-than-expected import product index for September, any room for commodity prices to fall further will be limited. Close attention should be paid to the US CPI for September and industrial productivity for August from the EU, which will affect base metal movement.
SMM expects that LME tin prices shall continue to meet resistance at USD 22,000/mt and spot tin prices will move in the RMB 156,000-159,500/mt on Friday.