SHANGHAI, Jul. 17 (SMM) -- LME tin for delivery in three months opened at USD 21,075/mt and closed at USD 21,220/mt overnight, up by USD 270/mt from a day earlier, with the highest price at USD 21,485/mt and the lowest price at USD 21,075/mt. Daily trading volumes were 241 lots, down by 161 lots. Positions were 22,207 lots, down by 664 lots from a day earlier. LME tin inventories were down by 175 mt to 11,255 mt.
Due to positive economic data from the US and stronger euro, LME tin prices fluctuated higher to around 30-day moving average but still met resistance at 20-day moving average. Finally, LME tin prices closed at USD 21,220/mt, up USD 270/mt from a day earlier.
LME base metal prices largely closed with gains overnight, as market sentiment was boosted on possible Spanish bailout hope. The Spanish government is preparing to ask for financial aid from the ECB. Although market has low expectation over the EU summit to be held on Thursday and Friday, any progress of the Spanish debt crisis is still possible. Meanwhile, Germany officials also expressed stronger willingness to help Greece. In addition, according to data from ZEW, Germany's economic sentiment for September rebounded the second consecutive month, better than market expectation, despite that the index was still not optimistic. Generally speaking, possibility for Spain to ask for financial aid is high and the Greece may likely to receive bailout as well, which greatly boosted risk appetite.
Market focus is the EU summit. SMM expects that LME tin prices will meet resistance at USD 21,500/mt and will find support at USD 20,800/mt.In the Shanghai tin spot market, spot tin prices will move in the RMB 153,500-157,000/mt on Wednesday.