SHANGHAI, Oct. 17 (SMM) – LME tin opened at USD 19,625/mt on Thursday. The metal touched day’s high of USD 19,700/mt and day’s low of USD 19,000/mt before closing down USD 200/mt at USD 19,300/mt. Trading volumes were down 52 lots to 484 lots, with positions up 422 lots to 22,176 lots. Inventories were unchanged at 9,155 mt.
On the macro front, data from the People’s Bank of China showed that the country’s M2 supply growth accelerated to 12.9% in September and new yuan loans hit the highest since 2000. Initial jobless claims in the US were better than expected last week. Recent downbeat economic data from the euro zone have triggered worries over deflation risks in the single currency bloc.
Technical indicators suggest that LME tin is now in “oversold territory”, implying that any downside potential will be limited, with prices expected to test support at USD 19,000/mt on Friday.
In Shanghai spot tin market, the inflow of cheap goods will fuel buying interest, but this is insufficient to boost prices. Mainstream traded prices are likely to fall further to RMB 135,500-138,000/mt on Friday.