SHANGHAI, Jan. 9 (SMM) – LME tin for delivery in three months opened at USD 24,004/mt and closed at USD 24,150/mt, up USD 100/mt from a day earlier, with intraday high at USD 24,200/mt and the low at USD 23,900/mt.Daily trading volumes were 267 lots, up 6 lots. Positions were 22,681 lots, up 434 lots. LME inventories were 12,705 mt, up 50 mt.
LME tin prices moved around 5-day moving average, and were relatively resilient compared to other base metals. Technically speaking, LME tin prices did not indicate any downward trend, and indicators suggested upward momentum. During the European trading hours, LME tin prices finally closed at USD 24,150/mt, up USD 100/mt from a day earlier.
In the euro zone, the unemployment rate surged to 11.8% in November amid financial crisis and austerity measure. Unemployment rate for November in Spain is the highest at 26.6% among other euro zone countries. Germany’s exports for November fell by 3.4% MoM, the largest decline in one year. However, Germany’s monthly rate of factory orders fell 1.8% and annual rate of factory orders fell 1.0%, better than market expectation. The investor confidence index also showed that the euro zone is stepping output of darkest period brought by debt crisis.
In the US, investors’ attention was shifted to the earnings report. Corporate earnings are expected to be slightly better than the third quarter's lackluster results. Meanwhile, the BPC said that the US may report debt default on February 15th, stoking risks that the US credit rating will be cut down.
In China, China’s central bank continued to inject total RMB 38 billion liquidity into market through 7-day and 28-day reverse repos operation.
SMM believes that LME tin prices will continue to advance above 5-day moving average, and spot tin prices will move between RMB 156,500-160,000/mt.