Tin At 17-Month Lows, Likely To Fall Further

London Metal Exchange (LME) three months metal yesterday retested Mondays 17-month low of $5,890 a tonne, a significant decline from the 1996 high of $6,650. The market is finding little in the way of buying interest, while speculators are willing to carry on selling at the moment, one LME floor trader said. Chartwise the market remains vulnerable to further losses.

Traders suggested a close below $5,890 yesterday would prompt further chart selling. There are major stops below the market...prices have the potential to plunge to $5,450, a trader said. Once again critical support at $5,900 is under test and the threat of a major breakdown is real, said analyst Elli Gifford of Investment Research of Cambridge.

 

Closes below support would point to falls to $5,500 at least, she said in a market commentary.

Consumers are adopting a wait-and-see attitude.

The trade are not participating in the market at the moment...they are looking for even lower levels, a trader said.

Though LME inventories are declining, physical offtake remains slow. Stocks currently stand at 9,820 tonnes after falling by 145 tonnes yesterday.