SHANGHAI, Jul. 7 (SMM) –LME tin opened at USD 14,100/mt on Monday. The metal touched day’s high of USD 14,400/mt and day’s low of USD 13,900/mt before closing up USD 75/mt at USD 14,275/mt. Trading volumes were down 9 lots to 173 lots, and positions were up 45 to 19,987. Inventories fell 5 mt to 7,590 mt. Worries over potential Greek exit from the euro zone and plunging Chinese stock market caused LME tin to fall. But the metal finally managed to close with gains as negative US economic data pushed the US dollar index down. Greece defaulted and rejected austerity measures. However, the resignation of Greece’s Finance Minister might bring some hope to unsolved Greek debt crisis. Investors should watch possible risks to futures markets from China’s policies changes amid plunging stock market. LME tin is expected to test support at USD 13,800/mt and meet resistance at USD 14,400/mt on Tuesday.
SHFE 1509 tin contract hovered around the 5-day moving average during Monday’s night session. The contract should move between RMB 106,000-111,000/mt on Monday. In Shanghai spot market, weak SHFE tin will drag mainstream traded prices down to RMB 112,000-114,000/mt.