SHANGHAI, Oct. 25 (SMM) -- LME tin for delivery in three months opened at USD 20,310/mt and closed at USD 20,375/mt overnight, up by USD 25/mt from a day earlier, with the highest price at USD 20,455/mt and the lowest price at USD 20,268/mt. Daily trading volumes were 205 lots, down by 279 lots. Positions were 20,804 lots, down by 149 lots from a day earlier. LME tin inventories were 11,760 mt, up 5 mt from a day earlier.
Economic data from major economies were mixed overnight. China’s flash PMI released by HSBC was below 50, and the Eurozone PMI was still weak. LME tin prices moved below USD 20,400/mt for most of the time last week and closed at USD 20,375/mt, up USD 25/mt from a day earlier.
LME base metal prices drifted lower overnight as the Fed did not signal any expansions of QE3.The Fed reserve kept interest rate unchanged, and maintained to purchase 40 billion of bonds per month. As the US election is only two week’s later The Fed’s stable operation is within market expectation. The US economy expanded moderately in recent months, however, the unemployment rate was still high. Meanwhile, the US housing market was still sluggish. Economic data released on Wednesday were mixed. China’s initial PMI released by HSBC rose to three month high at 49.1, and the US Markit PMI for October rose to 51.3.However, the Germany PMI for October contracted for six consecutive months to 45.7. The Eurozone initial PMI for October fell to 45.3, and the Eurozone composite PMI hit a 40-mont low at 45.8, suggesting that the euro zone is contracting further.
SMM expects that LME tin prices will be support at USD 20,300/mt and Shanghai spot tin prices will move in the RMB 147,500-152,000/mt range on Thursday.