SHANGHAI, Apr. 22 (SMM)-LME tin market last Friday opened at USD 20,601/mt, with the highest and lowest level of USD 21,190/mt and USD 20,406/mt, respectively. Finally, LME tin market closed at USD 20,800/mt, up USD 49/mt from a day earlier. Trading volumes were 411 lots, down 346 lots. Positions were 20, 709 lots, down 467 lots. Inventories were down 80 mt to 14,545 mt.
with the highest and lowest level of USD 20,805/mt and USD 20,450/mt, respectively. During European trading hours, LME tin performed other metals, briefly reaching USD 21,190/mt. However, the UK’s credit rating cut dampened the market. As a result, LME tin closed at USD 20,800/mt, up USD 49/mt.
The 2-day G20 Finance Minister meeting concluded on April 19, and the meeting, focusing on the European debt issues, reached a consensus that a tougher fiscal cut target will not be set for debt-ridden countries, briefly boosting European equities.
The uncertainties, however, remain in Europe. Followed the Moody’s move, Fitch Ratings became the second international agency to strip UK’s AAA credit rating, down to AA+. The downgrade was due mainly to the country’s gloomy economic outlook and existing fiscal tightening. The S&P may also join the line. The credit cut by rating agencies signaled market concerns over economic growth momentum in the UK. The UK GDP for 1Q to be released this week will give more market direction. The Italian Parliament finally reached consensus and decided to re-elect current President Giorgio Napolitano, but Pier Luigi Bersani, the centre-left leader, announced his imminent resignation after new president is chosen, showing the political turmoil in the country is far being resolved.
In neighbor markets, the US dollar index was up 0.17 to 82.75. The US and European equities markets advanced except German Stock Index Dax, and most LME metals closed lower, with an exception of lead.
A slew of economic data will be released today, including the Chicago Fed National Activity Index for March, the US existing housing sales for March, and the euro zone consumer confidence for April. The results of these figures will affect market direction. SMM expects LME tin to come under pressure at the 5-day moving averages, but the support at USD 20,500/mt will be solid. In the domestic spot tin market, traded prices will rise slightly to RMB 141,000-144,000/mt on Monday.