SHANGHAI, Aug. 27 (SMM) –LME tin opened at USD 14,185/mt on Wednesday. The metal touched day’s high of USD 14,200/mt and day’s low of USD 13,670/mt before closing down USD 400/mt at USD 13,700/mt. Trading volumes were up 140 lots to 464 lots, and positions were down 150 to 20,951. Inventories fell 70 mt to 7,420 mt. The PBOC’s interest rate and RRR cuts offered only temporary relief to base metals, but failed to remove concerns over the Chinese economy, as reflected by continued fall in Chinese stock market. US durable orders rose in July, boosting the US dollar. A firmer greenback put a drag on base metals. With market still worried about the Chinese economic outlook, LME tin should test support at USD 13,700/mt or even USD 13,300/mt on Thursday.
SHFE 1509 tin contract should move between RMB 98,000-100,000/mt. In Shanghai spot market, falling LME and SHFE tin will drag mainstream traded prices down to RMB 101,500-103,500/mt.