SHANGHAI, Oct. 19 (SMM) -- LME tin for delivery in three months opened at USD 21,500/mt and closed at USD 21,770/mt overnight, up by USD 245/mt from a day earlier, with the highest price at USD 21,800/mt and the lowest price at USD 21,400/mt. Daily trading volumes were 445 lots, up by 193 lots. Positions were 22,083 lots, down by 55 lots from a day earlier. LME tin inventories were 11,580 mt, up 35 mt from a day earlier.
China’s GPD for Q3 showed that China’s economy hit bottom, improving market sentiment. However, the EU summit did not report significant progress, weighing down market. LME tin prices broke through resistance at 10-20 day moving average and closed at USD 21,770/mt, up USD 245/mt from a day earlier.
LME base metal prices largely advance during Asian trading hours, pared gains during the European and the US trading hours. The EU summit still has many uncertainties, but some progresses have reported as well. It was reported that there would be and agreement on a political framework for the end of 2012 and a gradual implementation in 2013 for the new EU single supervisory mechanism (SSM) for banks, and Germany agreed that all 6,000 banks in the 17-nation euro zone will be regulate by the ECB and daily fairs shall be regulated by their own county’s regulation institutions. Meanwhile, banking recapitalization would be carried out in 2013. However, the US economic data failed market expectation, weighing on base metal prices. According to data from the US Department of Labor, last week’s initial jobless claim grew to 46,000, far higher than 30,000 expected, dampening positive sentiment in the market.
Market players pay attention to the EU summit, and the US dollar rebound may weigh on commodity price. If LME tin prices are able to break through 10-20 day moving average, prices will aim USD 22,000/mt as the next target. In the Shanghai tin spot market, sluggish downstream consumption may prevent prices from rising further. SMM thus expects that Shanghai spot tin prices will move in the RMB 153,000-156,500/mt on Friday.