SHANGHAI, Dec. 2 (SMM)-LME tin market overnight opened at USD 20,500/mt, with the highest and lowest level of USD 20,700/mt and USD 20,000/mt, respectively. Finally, LME tin market closed at USD 20,150/mt, down USD 450/mt from a day earlier. Trading volumes were 289 lots, down by 193 lots. Positions were 15,319 lots, up by 141 lots. Inventories were 12,150 mt, down by 340 mt.
The PMI both announced by CFLP and HSBC for November fell below 50 in China, the boom-or-bust line, negatively affecting market sentiment. Later, Germany, France and Italy announced the better-than-expected PMI data for November, but remained weak. As gradually absorbing the previous positive news, markets tended to fluctuate. Despite the favorable US data, LME base metal prices most closed down.
LME tin market overnight failed to sustain the previous rising trend, and moved lower, down as low as USD 20,000/mt before finally finishing at USD 20,150/mt, down USD 450/mt from a day earlier. China announced the falling PMI for November, a sign of mild declines in the economic growth. Meanwhile, the manufacturing industry in the euro zone dropped at the fastest pace in recent two years, adding to market worries. But, the better-than-expected US economic data restricted price declines.
Particular attention should be paid to the upcoming US non-farm data. LME tin market is expected to remain weak due to negative impact on market sentiment from the data released overnight, with support expected at around USD 20,000/mt. In domestic tin market, traded prices fell further on Thursday, and prices on Friday will hardly improve as LME tin market overnight tracked lower again, with spot prices expected between RMB 167,000-172,000/mt.