SMM Morning Review - 2010/12/10 Zinc Market

SHANGHAI, Dec. 10 (SMM) -- LME tin market opened at USD 25,850/mt and closed at USD 25,875/mt overnight, up by USD 250/mt from a day earlier, with the highest price at USD 26,050/mt and the lowest price at USD 25,300 mt. Daily trading volumes were 210 lots and positions were 20,767 lots. LME tin inventories were up by 90 mt to 15,755 mt. Cancelled warrants were 1,760 mt, accounting for 11.7% of total inventories. LME tin is the only base metal that ended with gains on Thursday due to strong fundamentals supports.
Market expectation towards China&rsquo;s imports and exports data in November to be released today is pessimistic, as current low SHFE/LME copper price ratio is not appropriate for copper imports. Market remained cautiously before the release of the data. 
ETF Securities will launch the first physically-backed base metals Exchange Traded Commodities&nbsp; on December 10th, while ETCs for aluminum, lead and zinc will be launched in 2011. As China&rsquo;s a slew of economic data will be released tomorrow, market concern over further tightening monetary policy is exacerbating. It is expected that base metal trading will remain volatile and LME tin prices will fluctuate around USD 25,500/mton December 10th.
SMM believes that LME tin prices will move around USD 25,000-25,500/mt amid intense struggle between shorts and longs on December 9th.
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