SHANGHAI, Jul. 17 (SMM) –LME tin opened at USD 14,680/mt on Thursday. The metal touched day’s high of USD 15,105/mt and day’s low of USD 14,670/mt before closing up USD 400/mt at USD 15,050/mt. Trading volumes were up 220 lots to 485 lots, and positions were down 389 to 18,917. Inventories grew 80 mt to 7,325 mt. The price rise was due mainly to exit of shorts. Greece's Parliament passed austerity measures, but Germany’s Finance Minister questioned whether Greece would obtain a third round of bailout. The US dollar index rose on fear of possible interest rate hike. A strong US dollar will cap LME tin below USD 15,300/mt on Friday.
SHFE 1509 tin contract should move at RMB 109,000-111,000/mt on Friday. In Shanghai spot market, strong SHFE tin will lend support to low-end spot prices. But inflow of deliverable goods will prevent the high-end prices from rising. Mainstream traded prices are expected at RMB 111,000-113,500/mt.