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SMM Morning Review - 2012/1/18 Tin Market
Jan 18,2012 09:29CST
smm insight
It is expected that spot tin prices will remain stable between RMB 170,000-171,500/mt on Wednesday.

SHANGHAI, Jan. 18 (SMM) -- LME tin for delivery in three months opened at USD 20,975/mt and closed at USD 21,650/mt overnight, up by USD 640/mt from a day earlier, with the highest price at USD 21,740/mt and the lowest price at USD 20,975/mt. Daily trading volumes were 534 lots, up by 399 lots, Positions were 15,669 lots, down by 422 lots from a day earlier. LME tin inventories were down by 225 mt to 10,935 mt.

LME tin prices advanced all the way during the Asian trading hours on better-than-expected data from China, but grew slower after hitting USD 21,500/mt and closed at USD 21,650/mt, up USD 640/mt, or up 3.05% from a day earlier. The increase in US and European equity market also lent support for base metal prices.

China's industrial output at large-sized enterprises was up 13.9% YoY, and fixed-assets investment, excluding farmers, was up 23.8% YoY., and retail sales were up 17.1% YoY, suggesting steady improvement in economic restructuring and stable and fast growth in economy. Auction of Spanish, Greek and EFSF’s bond was positive, and the New York Fed manufacture index for January also vaulted market expectation. Boosted by improved market sentiment, equity markets in the US and Europe advanced, and the US dollar fell to test 80 mark. In response, base metal prices advanced to certain extent. The Greek negotiation will be resumed on Wednesday, and market sentiment is expected to be cautious.

The positive news boosted base metal prices higher, including LME tin prices, but risks still remain. Nevertheless, market concern caused by Standard & Poor’s credit rating cut on European countries eased to certain extent due to better-than-expected auction of Spanish and Greek government bond. SMM expects that LME tin prices will continue to hover at high levels. In the Shanghai tin spot market. Although LME tin prices hiked, buying interest will be low before Chinese New Year holiday. It is expected that spot tin prices will remain stable between RMB 170,000-171,500/mt on Wednesday.


tin; tin price; LME tin price; spot tin price; European debt crisis; US dollar; euro; Jan. 18; in the Shanghai tin spot market;

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