SMM Tin Market Morning Review (2012-11-20)

SHANGHAI, Nov. 20 (SMM) -- LME tin for delivery in three months opened at USD 20,501/mt and closed at USD 20,800/mt overnight, up by USD 399/mt from a day earlier, with the highest price at USD 20,825/mt and the lowest price at USD 20,390/mt. Daily trading volumes were 287 lots, up by 196 lots.  Positions were 20,356 lots, up by 50 lots from a day earlier. LME tin inventories were down by 20 mt to 11,455 mt.

LME tin prices surged overnight amid hopes that the United States might avoid the dire consequences of the “fiscal cliff", and the news that the Eurozone financial ministers' meeting will approve EUR 4 billion loans to Greece. LME tin prices advanced all the way to close at USD 20,800/mt, up USD 399/mt from a day earlier.

LME base metal prices advanced to hit a two-month high as investors believed that Greece was quiet likely to receive financial aid and the US financial crisis signalized progress.  Meanwhile, a report said that Greece may receive the next payment of its bailout fund on Dec. 5 after European policymakers met in Paris on Monday to forge a common position on the issue. And European finance ministers will meet on Tuesday to further discuss the disbursement of the EUR 44 billion bailout fund for Greece.

However, Moody’s cut of France credit rating will dampen upward momentum of LME tin prices. SMM expects that LME tin prices will try to break through USD 20,900/mt and Shanghai spot tin prices will move between USD 147,500-150,000/mt on Tuesday.