SHANGHAI, Feb. 1 (SMM) -- LME tin for delivery in three months opened at USD 24,150/mt and closed at USD 24,200/mt overnight, up by USD 125/mt from a day earlier, with the highest price at USD 24,400/mt and the lowest price at USD 23,751/mt. Daily trading volumes were 439 lots, unchanged from a day earlier. Positions were 18,143 lots, up by 196 lots from a day earlier. LME tin inventories were down by 215 mt to 9,100 mt.
LME tin market was relatively quiet during Tuesday’s Asian trading hours, but advanced slightly to hit USD 24,400/mt during the early European trading hours. During the late European trading hours, LME tin prices struggled around USD 24,200/mt, and later fell to USD 23,751/mt on lower-than-expected US economic data and weak euro. At the tail of the trading, LME tin prices pared certain losses and closed at USD 24,200/mt, up USD 125/mt from a day earlier, the only metal that closed with gains overnight.
Market sentiment was still bearish on Tuesday. The US Chicago Purchasing Managers Index (PMI) for January was 60.2, well below market expectation of 63. In response, market sentiment was weighed down and the US dollar index rebounded. LME base metal fluctuated wider and slipped to certain extent after the US announced its economic data. China’s PMI for January will be announced on Wednesday morning and is expected to be lower than 50 due to holiday factors, which will weigh on base metal prices.
The negative economic data from the US, coupled with unoptimistic expectation over China’s PMI, will exert pressure on Wednesday’s LME tin prices. However, SMM expects that LME tin prices will continue to be supported by strong fundamentals on Wednesday, with support at USD 22,000/mt and resistance at USD 25,000/mt. In China’s domestic market, supply of goods is tight as tin smelters are reluctant to move goods, so spot tin prices still have room to advance. SMM expects that spot tin prices will move in the RMB 183,000-18,500/mt on Wednesday.