SHANGHAI, Jul. 27 (SMM) –LME tin opened at USD 14,950/mt last Friday. The metal touched day’s high of USD 15,500/mt and day’s low of USD 14,850/mt before closing up USD 495/mt at USD 15,445/mt. Trading volumes were up 303 lots to 551 lots, and positions were down 150 to 18,900. Inventories fell 40 mt to 7,135 mt. The price rise was driven by short-covering. Caixin’s China’s flash manufacturing PMI for July hit over one year low, with sub-indexes pointing to contraction. The US dollar index fell as US new home sales in June fell to seven-month low, offering support to LME tin. The US Fed’s policy decision will be eyed this week. LME tin should challenge resistance at USD 16,000/mt on Monday.
SHFE 1509 tin contract should break resistance at RMB 110,000/mt and move between RMB 108,500-111,500/mt, should LME tin stay high. In Shanghai spot market, supply of cheap goods will fall, and mainstream traded prices are expected at RMB 110,500-112,500/mt.