SHANGHAI, Oct. 29 (SMM) – LME tin prices overnight opened at USD 23,102/mt, with the high end of the price range USD 23,400/mt, and finding support at USD 23,100/mt. Finally, LME nickel prices closed at USD 23,228/mt, up USD 103/mt from the previous trading day. Trading volumes increased by 113 lots, to 265 lots, and total positions decreased by 584 lots, to 20,171 lots. Inventories fell by 170 mt, to 12,940 mt.
Market expectations that the Fed will delay QE3 wind-down lent support to base metals prices. The US Federal Reserve announced industry production in September rose by 0.6% on the month, compared to a growth of 0.4% expected, and the largest growth since February. This triggered market optimism toward US demand. But fears that China will tighten credit refrained LME tin price gains.
LME tin prices to hit USD 23,201/mt and closing at USD 23,125/mt, up USD 240/mt. US durable goods orders in September rose 3.7% on the month, topping market expectations, and triggering expectations that metal demand from industries will strengthen.
LME tin prices will level out and find support at USD 22,600/mt today. Spot prices in Shanghai should move between RMB 147,000-151,000/mt.