SHANGHAI, Jan. 14 (SMM) -- LME tin for delivery in three months opened at USD 24,700/mt and closed at USD 24,925/mt last Friday, up by USD 355/mt from a day earlier, with the highest price at USD 24,925/mt and the lowest price at USD 24,540/mt. Daily trading volumes were 428 lots, up by 94 lots. Positions were 23,914 lots, up by 208 lots from a day earlier. LME tin inventories were 12,700 mt, unchanged from a day earlier.
China’s CPI for December rose to 7-month high, fueling market expectation over inflationary pressure, which weighed down base metal prices. LME tin prices unexpectedly advanced to hit a high at USD 24,925/mt and finally closed at USD 24,925/mt, up USD 355/mt from a day earlier.
The US exports for November totaled USD 182.25 billion, up 1.0% MoM. Imports totaled USD 231.28 billion, up 3.8% MoM. USD trade deficit expanded to USD 48.73 billion, up 15.8% MoM, and its trade deficit to EU and Germany hit a new high since April 2012.In addition, the US Fed financial deficit fell to USD 260 million in December due to tax increase and government expenditure cut, which was USD 172.11 billion lower from a month earlier. The yields of the Italian 10-year bond fell 2 basis points to 4.14%, pushing the higher. In addition, the European official’s concern over Cyprus grew after the Moody’s cut credit rating of Cyprus.
In China, the CPI for December rose 2.5% YoY, higher than 2.3% expected and the highest in seven months. China’s annualized PPI for December was 1.9%. The decline in PPI was deeper than market expectation, a reflection that domestic industrial demand was not brisk.
In Japan, the Japanese bank approved JPY 10.3 trillion stimulus package.
In other markets, the US dollar fell 0.26% to close at 79.55; the Down Jones Index rose 0.13%; and S&P 500 index fell 0.04 points.
SMM expects that LME tin prices will meet resistance at USD 25,000/mt and will find support at USD 24,200/mt. In the tin spot market, spot tin prices will move between RMB 159,000-162,000/mt on Monday.