SHANGHAI, May 2 (SMM) – The US economic data turned out mixed overnight with PMI data above expectations but construction spending lower than expected, weighing on LME metals. As a result, LME tin prices opened at USD 22,720/mt in electronic trading and kept fluctuating around USD 22,700/mt, to finally close at USD 22,460/mt, down USD 240/mt from the previous trading day, with the highest price at USD 22,800/mt, and lowest price at USD 22,460/mt. Daily trading volumes were 185 lots, down 233 lots. Positions were 19,774 lots, up 191 lots. LME tin inventories were up 170 mt to 14,515 mt.
China Federation of Logistics & Purchasing reported May 1 that China’s April PMI was 53.3, above market expectations, while the US ISM Manufacturing PMI for April was also reported higher than expectations, shoring up market confidence. Meanwhile, US GDP growth for 1Q was reported at 2.2%, much lower than the data saw in the previous quarter, causing investors’ speculation on QE3 policies. US and European equities moved up overnight, helping support LME base metals. Despite the better economic data, investor remained cautious towards market outlook.
On Wednesday, domestic tin prices should mainly move between RMB 163,500-165,500/mt.