SHANGHAI, Aug. 12 (SMM) -- LME tin for delivery in three months opened at USD 22,700/mt and closed at USD 23,799/mt overnight, up by USD 804/mt from a day earlier, with the highest price at USD 23,799/mt and the lowest price at USD 22,500/mt. Daily trading volumes were 230 lots, down by 605 lots. Positions were 20,920 lots, up by 357 lots from a day earlier. LME tin inventories were up by 35 mt to 22,615 mt.
On Thursday, LME tin prices advanced to USD 23,700/mt after opening, and fluctuated narrowly around USD 23,500/mt later. At the tail of the trading, LME tin prices further advanced to close at USD 23,799/mt, up by USD 804/mt from a day earlier. Better-than-expected US employment report as well as expectation over RMB appreciation boosted investors’ confidence in base metal demand from China which is the largest base metal consumer in the world.
The US Department of Labor announced on Thursday, the seasonally adjusted US initial jobless claim in the week ending on August 6th fell by 7,000 to 395,000, lower than previous estimation of 400,000. The data inspired market, with the US equity rebounding and the base metal prices rallying.
Chinese CNY versus the US dollar in the China Foreign Exchange Center recorded the largest intraday advance in nine months, with central parity rate of the yuan also hitting a historical high.
SMM expects the LME tin price will rebound further, but upward momentum will wane to certain extent on Friday, with resistance between USD 24,000-24,500/mt. Boosted by overnight’s LME tin price rally, Shanghai tin spot prices are expected to advance slightly, and will fluctuate in the RMB 191,000-194,000/mt range on Friday.