SHANGHAI, Jul. 9 (SMM) – LME tin prices opened at USD 18,845/mt last Friday and dropped to a low of USD 18,500/mt since the worse-than-expected non-farm payrolls lowered market expectations on QE3 and the rising US dollar index weighed on base metals. LME tin prices closed at USD 18,650/mt, down USD 250/mt from the previous trading day, with an intraday high at USD 18,930/mt. Daily trading volumes were down 126 lots to 394 lots, and positions rose 236 lots to 20,500 lots. LME tin inventories were 12,735 mt, up 30 mt.
The US Department of Labor released July 6 the non-farm payrolls for June were up 80,000 after seasonal adjustment, lower than expected 90,000. The preliminary and revised growth for May was 69,000 and 79,000 respectively, while preliminary and revised rises were 77,000 and 68,000 in April. US unemployment rate was 8.2% in June, remaining flat from May and within market expectations. US non-farm payrolls in June were only up slightly with growth lower than expected, indicating the slowing US economic growth. As a result, risk appetite was lowered and investors turned to US dollar for safe haven, dragging down base metals. Market should focus on China’s CPI data on Monday.
In China’s domestic markets, spot tin prices should be between RMB 147,500-149,000/mt on Monday.