SHANGHAI, Jun. 1 (SMM) – LME tin prices opened at USD 19,660/mt in electronic trading overnight and fluctuated narrowly between USD 19,600-19,800/mt since market still worried about progress in Spanish debts and since US jobless claims were reported disappointing. Prices finally closed at USD 19,600/mt, down USD 200/mt from the previous trading day, with the lowest price of the day at USD 19,550/mt and the highest at USD 19,800/mt. Daily trading volumes were up 7 lots to 197 lots, while positions decreased by 56 lots to 20,361 lots. LME tin inventories remained unchanged at 13,410 mt.
According to ADP Employer Services, US employment grew by 133,000 in May, above the 119,000 registered in April but lower than the expected 150,000. US jobless claims reached 383,000 last week, higher than both previous data and market expectation. As European leaders mentioned about offering supports for bank recapitalization and establishing a banking union, market was somewhat shored up. However, the weak US employment data drove risk aversion up, causing the Euro to sink to a 22 month low against the US dollar and weighing on LME metals. Market players expected China’s May CPI to be released by China Federation of Logistics & Purchasing Friday will fall to around 52% following the continuous rises in the past five months, indicating the further shrink of manufacturing activities.
On Friday, tin prices in China’s domestic market should be between RMB 153,500-155,000/mt.