SHANGHAI, Oct. 18 (SMM) -- LME tin for delivery in three months opened at USD 21,350/mt and closed at USD 21,525/mt overnight, up by USD 305/mt from a day earlier, with the highest price at USD 21,580/mt and the lowest price at USD 21,101/mt. Daily trading volumes were 252 lots, up by 11 lots. Positions were 22,138 lots, down by 69 lots from a day earlier. LME tin inventories were 11,545 mt, up 290 mt from a day earlier.
LME tin prices moved higher overnight amid improved sentiment from positive economic data from the US and the euro zone. The euro strengthened and the US housing data were unexpectedly strong, but market concern over China’s GDP and the EU summit capped price increase. LME tin prices still met resistance at 20-day moving average, and closed at USD 21,525/mt, up USD 305/mt from a day earlier.
LME base metal prices all closed with gains overnight amid improved risk appetite. In the euro zone, market sentiment eased after Moody’s kept credit rating of Spain unchanged. In the US, new home starts and permits for new buildings for September were positive, suggesting that the US housing market recovery is heading better direction. In China, China’s premier Wen Jiabao said the Q3 economic condition was relatively positive, fueling market expectation that GDP for Q3 to be announced on Thursday will be positive. China’s will announce retail sales and GDP for September. If the data improves, base metal prices will be further supported. Meanwhile, the EU summit will also be held on Thursday.
SMM believes that LME tin prices will meet resistance at 20-day moving average and will be supported at USD 20,800/mt. Shanghai spot tin prices will move in the RMB 153,000-156,500/mt on Thursday.