SHANGHAI, Oct. 16 (SMM) -- LME tin for delivery in three months opened at USD 21,300/mt and closed at USD 20,950/mt overnight, down by USD 430/mt from a day earlier, with the highest price at USD 21,300/mt and the lowest price at USD 20,850/mt. Daily trading volumes were 402 lots, up by 5 lots. Positions were 22,871 lots, down by 267 lots from a day earlier. LME tin inventories were down by 325 mt to 11,430 mt.
LME tin prices extended losses due to concern over China’s demand outlook and the US dollar. During the late trading hours, LME tin prices slipped slowed to hit a low at USD 20,850/mt. Finally, LME tin prices closed at USD 20,950/mt,down USD 430/mt from a day earlier.
LME base metal prices largely closed with losses overnight, as decline in China’s core economic data triggered market concern over China’s economic outlook. The sharp decline of China’s CPI suggested eased inflationary pressure. However, China’s central bank may not likely adopt further loose monetary policy for concern over imported inflation and possibility of CPI rebound. China's PPI was down 3.6% YoY, the lowest in 35 months, suggesting decline in industrial profitability, which weighed on industrial products. In the US, the positive retail sales data helped boost base metals. Investors shifted their focus to e EU summit, which will shed signals to guide base metal price movement.
It is expected that market sentiment will be cautious before the EU summit. SMM expects that LME tin prices will move around USD 21,000/mt with support at USD 20,800/mt.In the Shanghai tin spot market, spot tin prices will move in the RMB 154,000-157,000/mt on Tuesday.