SHANGHAI, Jan. 10 (SMM) – LME tin for delivery in three months opened at USD 24,012/mt and closed at USD 24,400/mt, up USD 250/mt from a day earlier, with intraday high at USD 24,600/mt and the low at USD 24,012/mt.Daily trading volumes were 466 lots, up 199 lots. Positions were 23,106 lots, up 425 lots. LME tin inventories were 12,705 mt, flat from a day earlier.
Annualized rare of GDP for 3Q in the euro zone contracted by 0.6%. Seasonally adjusted monthly rate of industrial output for November in Germany rose by 0.2%, below 1% expected, and previous reading was adjusted from 2.6% to 2.0%. However, the improved new orders and business confidence fueled optimistic expectation over industry output outlook in 2013.The US consumer loans for November increased by USD 1.89 billion MoM, better than market expectation, and suggesting that the US consumption is improving.
Although the European Central Bank kept interest rate unchanged, market expected that Mario Draghi would adopt bold policies in the future.
In Chin, the Ministry of Finance reported that China’s tax reduction totaled 200 billion in 2012. As the new policy only trial implemented for a few months in 2012, it is expected that tax reduction will reduce sharply in 2013, which will greatly benefit small and medium enterprises.
In financial market, the S&P 500 index increased by 0.27%, and the US dollar slightly advanced. LME base metal prices closed mixed, and LME copper prices fell.
Close attention should be paid to China’s December trade data. LME tin prices meet resistance at USD 24,500/mt, but will make breakthrough if China’s trade data are positive. In China’s spot tin market, prices are expected to remain stable between RMB 157,500-160,500/mt on Thursday.