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SMM Morning Review – 2011/10/14 Tin Market
Oct 14,2011 09:47CST
price review forecast
SMM expects that spot tin prices may fluctuate in the RMB 183,500-185,500/mt range on Friday.

SHANGHAI, Oct. 14 (SMM) -- LME tin prices opened at USD 22,675/mt and closed at USD 22,050/mt overnight, down USD 650/mt from a day earlier, with the highest price at USD 22,700/mt and the lowest price at USD 22,050/mt. Daily trading volumes were 220 lots, up 61 lots. Positions were 18,460 lots, up 414 lots. LME tin inventories were 19,035 mt, up 125 mt from a day earlier.

LME tin prices presented quiet performance during the Asian trading hours, and fell to close at USD 22,050/mt during the European trading hours, down USD 650/mt from a day earlier. Investors’ concern over global economy outlook fueled risk aversion sentiment, and triggered sell-offs of commodity, stocks and risk assets, weighing on base metals. China’s trade data released overnight was disappointing. Meanwhile, waning optimism in the euro zone and uninspiring employment report from the US dampened market confidence.

Standard and Poor’s cut sovereign credit rating of Spain overnight, weighing down on LME base metals. Later came the positive news that Slovakian parliament approved expanding the European Financial Stability Facility on Thursday. China’s National Bureau of Statistics will release a series of economic indicators on Friday, and it is expected that September’s CPI may be flat or slightly lower from a month earlier. Meanwhile, Huijin Investment's purchase of stocks of China’s four state-owned banks, and State Council’s supportive measures for small and medium sized enterprises indicated that China’s tight monetary policy may ease to certain extent, which will improve liquidity in the market and will boost buying in base metal market.

Market is focusing on the release of China’s September CPI, and market expects that Septembers’ CPI may be flat or slightly slower from a moth earlier. Under this expectation, SMM expects that LME tin prices may slightly advance on Friday, with support at USD 22,000/mt and resistance at USD 23,000/mt. In China’s domestic tin spot market, the weak fluctuation of LME tin price may hard to boost spot tin prices, and SMM expects that spot tin prices may fluctuate in the RMB 183,500-185,500/mt range on Friday.

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