SHANGHAI, Aug. 25 (SMM) –LME tin opened at USD 14,820/mt on Monday. The metal touched day’s high of USD 15,000/mt and day’s low of USD 14,000/mt before closing down USD 815/mt at USD 14,055/mt. Trading volumes were up 256 lots to 696 lots, and positions were up 169 to 20,991. Inventories grew 235 mt to 7,590 mt. China’s A-share market ended down 8.5% on Monday, the biggest single-day loss in eight years. European and US stock market also tumbled. Risk aversion surged as a result. This caused LME tin to close down 5.48%, the largest decline since mid-April. Capital is fleeing from emerging economies. Plummeting Chinese stock market triggered market panic. LME tin should continue falling and test support at USD 13,600/mt on Tuesday.
SHFE 1509 tin contract should move around RMB 100,000/mt. In Shanghai spot market, plunging stock market and futures market have soured market sentiment, so mainstream traded prices are expected to drop to RMB 102,000-104,000/mt.
