SHANGHAI, Apr. 23 (SMM) –LME tin opened at USD 15,555/mt on Wednesday. The metal touched day’s high of USD 15,755/mt and day’s low of USD 15,500/mt before closing up USD 120/mt at USD 15,680/mt. Trading volumes fell 200 lots to 302 lots, with positions down 245 to 20,635. Inventories fell 50 mt to 9,375 mt. The US dollar index rose to 98 on positive US existing home sales, preventing LME tin from rising sharply. Markets are pessimistic over HSBC’s China manufacturing PMI due for release today, which will leave LME tin testing support at USD 15,500/mt on Thursday.
On Wednesday night, SHFE 1507 tin contract gained RMB 540/mt to RMB 113,480/mt. Trading volumes totaled 2,338 lots during the night session, with positions down 3,532. Some smelters closed for maintenance. This, combined with rising LME tin, should drive the most active SHFE tin contract up to RMB 113,000-114,500/mt on Thursday.
In domestic spot market, supply will fall due to facility maintenance at some smelters. This will allow mainstream traded prices to rise to RMB 111,000-114,000/mt.