SHANGHAI, Oct. 26 (SMM) –LME tin opened at USD 15,850/mt on Friday. The metal touched day’s high of USD 16,050/mt and day’s low of USD 15,690/mt before closing down USD 160/mt at USD 15,690/mt. Trading volumes were up 55 lots to 217 lots, and positions were up 53 to 20,588. Inventories grew 50 mt to 4,540 mt. The PBOC’s unexpected interest rate and RRR cuts drove a large wave of gains in base metals market. But the US dollar index rose after better-than-expected US October manufacturing PMI, sending LME tin back. The PBOC cuts reflect sluggishness in Chinese economy. The US Fed’s policy decision will come under the spotlight on Thursday. LME tin should test support at USD 15,400/mt on Monday.
SHFE 1601 tin moved lower after a high opening last Friday night. The contract should move between RMB 97,300-98,300/mt on Monday. In China’s spot market, more cheap goods will be released into the market due to pullback in SHFE tin. Mainstream traded prices are expected between RMB 96,000-98,000/mt.