SHANGHAI, Mar. 12 (SMM) – China’s first domestic corporate bond default last Friday was followed by suspension of trading in Baoding Tianwei Baobian Electric’s bonds and stocks on Tuesday as the solar panel maker suffered great losses last year. The news fanned concerns about a deepening credit crisis in the world’s top metal consumer. As a consequence, LME tin rose to USD 23,225/mt after opening Tuesday at USD 22,950/mt, but then fell back to close down USD 251/mt at USD 22,650/mt. Trading volumes added 76 lots from a day earlier to 373 lots, but positions decreased 124 lots to 22,511 lots. Inventories dropped 65 mt to 9,140 mt.
LME tin should be dragged down by other base metals and test support at the 60-day moving average on Wednesday. Spot tin prices in Shanghai are expected between RMB 138,000-141,500/mt.