SHANGHAI, Oct. 23 (SMM) -- LME tin for delivery in three months opened at USD 21,275/mt and closed at USD 20,500/mt overnight, down by USD 938/mt from a day earlier, with the highest price at USD 21,400/mt and the lowest price at USD 20,500/mt. Daily trading volumes were 522 lots, up by 281 lots. Positions were 21,358 lots, down by 1,049 lots from a day earlier. LME tin inventories were 11,755 mt, up 140 mt from a day earlier.
LME tin prices recorded the largest decline among other base metal prices, due to the US equity sluggishness and market concern over global economic growth outlook. LME tin prices plunged by 4.4% to close at USD 20,500/mt.
LME base metal prices large closed with losses overnight. Spain did not request financial support, which weigh on base metal prices. The US Federal Reserve will hold a two-day interest rate meeting. Given the adopted QE3 and the nearing of US president election, it is expected that no significant measures will be released from the Fed meeting. However, as the US economy has begun to recover since September, investors focus that whether there will be possible hints of adjustment of QE3 from the Fed meeting.
SMM expects that LME tin prices will remain low and will test support at USD 20,300-20,500/mt on Monday. In China’s tin spot market, spot tin prices will fall on LME tin price decline and will move in the RMB 149,500-154,000/mt range on Tuesday.