SHANGHAI, Oct. 24 (SMM) -- LME tin for delivery in three months opened at USD 20,671/mt and closed at USD 20,350/mt overnight, down by USD 150/mt from a day earlier, with the highest price at USD 20,699/mt and the lowest price at USD 20,125/mt. Daily trading volumes were 484 lots, down by 38 lots. Positions were 20,953 lots, down by 405 lots from a day earlier. LME tin inventories were 11,755 mt, unchanged from a day earlier.
Strong US dollar, renewed concern over the Spanish debt issue and lack of strong demand from China weighed on risk appetite. In response, LME tin prices extended losses to hit at low at USD 20,125/mt. However, finally, LME tin prices closed at USD 20,350/mt, down USD 150/mt from a day earlier.
LME base metal prices were bearish and extended losses in recent days, as lower-than-expected earnings report from the US and market concern over Spanish debt issue continued to weigh on risk assets. The Moody’s cut Spanish five region’s credit ratings, and put outlook into negative. Market is waiting for Spain's request for financial aid. In addition, lower-than-expected earnings reports from major listed US enterprises increased risk appetite. Investors turned to the US dollar as safe haven and sold off other risk assets. In response, base metal prices slumped.
SMM expect that’s LME tin prices will extend weak momentum and will tests support at 60-day moving average. In the Shanghai tin spot market, spot tin prices will move in the RMB 148,500-153,000/mt on Wednesday.