SHANGHAI, Mar. 23 (SMM) -- LME tin prices for delivery in three months opened at USD 23,000/mt and closed at USD 22,200/mt overnight, down USD 750/mt from a day earlier, with the highest price at USD 23,050/mt and the lowest price at USD 22,150/mt. Daily trading volumes were 333 lots, up 142 lots. Positions were 18,606 lots, down 383 lots. LME tin inventories were 12,690 mt, up 190 mt from a day earlier.
LME tin prices fell sharply during the Asian trading hours and early European trading hours, and hit a low of USD 22,150/mt after fluctuating narrowly during the evening trading hours. Finally, LME tin prices closed at USD 22,200/mt, down USD 750/mt from a day earlier. The sharp decline of LME tin prices was attributed to concern over base metal demand perspective following release of lower-than-expected PMI from China and euro zone.
HSBC's preliminary China purchasing managers index (PMI) fell to a four-month low in March, lower than 50 for the fifth consecutive month. The new low of new orders index in four months indicated waning demand both at home and abroad. What is more worrying is that the slowdown in manufacture activities began to affect employment market. Germany and France’s preliminary PMI both fell sharply below 50, and industrial orders also contracted significantly in January in the euro zone. The contraction of manufacture activities in China and the euro zone indicate that economic growth may fall further, which may curb demand for raw materials to great extent. In this context, LME base metal prices largely closed with losses overnight.
Market concern is retriggered again, and SMM expects that LME tin prices will continue to fluctuate weakly and will test sustainability at USD 22,000/mt. In China’s spot tin market, overnight LME tin price decline will weigh on spot tin prices to move in the RMB 169,000-171,000/mt range on Friday.