SHANGHAI, Jul. 2 (SMM) –LME tin opened at USD 13,880/mt on Wednesday. The metal touched day’s high of USD 14,535/mt and day’s low of USD 13,850/mt before closing up USD 605/mt at USD 14,485/mt. Trading volumes were down 296 lots to 304 lots, and positions were up 530 to 19,415. Inventories were unchanged at 7,635 mt. LME tin closed Wednesday up 4.36%, the largest daily gain in 10 weeks. The rally was driven mainly by technical side. China’s official manufacturing PMI and that released by HSBC for June both missed forecasts, triggering worries over the health of the Chinese economy. The unsolved Greek debt crisis will keep investors wary. Positive US ADP employment report implies that US non-farm payrolls due to release ahead of schedule on Thursday will be positive as well. LME tin should test support at USD 13,800/mt and meet resistance at USD 14,800/mt on Thursday.
During Wednesday’s night session, SHFE 1509 tin contract fell at firs of due entry of shorts, but then rebounded to near RMB 110,000/mt due to exit of shorts. The contract should rise to challenge resistance at RMB 110,000/mt on Thursday. In Shanghai spot market, limited supply and rising LME and SHFE tin prices overnight should push mainstream traded prices up to RMB 112,000-114,000/mt.