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SMM Morning Review - 2011/12/23 Tin Market
Dec 23,2011 09:45CST
smm insight
SMM expects that spot tin prices will remain stable in the RMB 157,500-160,000/mt range on Friday.

SHANGHAI, Dec. 23 (SMM) -- LME tin for delivery in three months opened at USD 19,100/mt and closed at USD 19,250/mt overnight, up by USD 50/mt from a day earlier, with the highest price at USD 19,325/mt and the lowest price at USD 19,100mt. Daily trading volumes were 146 lots, up by 10 lots. Positions were 15,784 lots, down by 296 lots from a day earlier. LME tin inventories were down by 10 mt to 11,960 mt.

LME tin prices largely fluctuated narrowly below USD 19,200/mt overnight, but were boosted to hit a high of USD 19,325/mt at the tail of the trading on upbeat economic data from the US. Finally, LME tin prices closed at USD 19,250/mt, up USD 50/mt from a day earlier.

According to data announced on Thursday from the US Department of Labor, last week's initial jobless claim unexpectedly fell to the lowest since April 2008, indicating that the labor market is recovering in the US. In addition, the US University of Michigan consumer confidence index for December and the Conference Board leading economic indicator for November both vaulted market expectation. Meanwhile, Italy Senate passed austerity plan with a vote of 257 to 41, paving the way for EUR 20 billion austerity plan. The upbeat economic data from the US boosted market sentiment, and the pass of austerity plan in Italy also stoked investors’ confidence. In this context, the US and European equity markets advanced and LME base metal prices railed across the board. Shanghai Composite Index and Shenzhen Composite Index both fluctuated down after a low open on December 22nd, new lows in 33 months, with trading volumes also at low levels in 2011. The sluggish performance of China's stock markets will weigh on Shanghai base metal prices in the near term. It is expected that trading volumes will be thin during the last trading days before Christmas holiday.

SMM expects that LME tin prices will fluctuate around USD 19,000/mt during the last trading day before Christmas holiday. In China’s domestic tin spot market, as LME tin price fluctuate in a narrow band and since fundamentals of tin have not changed, SMM expects that spot tin prices will remain stable in the RMB 157,500-160,000/mt range on Friday.

tin; tin price; LME tin price; spot tin price; European debt crisis; US dollar; euro; Dec. 23; in the Shanghai tin spot market;

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