SMM Tin Market Morning Review (2013-1-23)-Shanghai Metals Market

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SMM Tin Market Morning Review (2013-1-23)

Price Review & Forecast 10:20:27AM Jan 23, 2013 Source:SMM

SHANGHAI, Jan. 23 (SMM) -- LME tin for delivery in three months opened at USD 25,030/mt and closed at USD 24,787/mt overnight, down by USD 243/mt from a day earlier, with the highest price at USD 25,075/mt and the lowest price at USD 24,605/mt. Daily trading volumes were 344 lots, up by 281 lots. Positions were 22,747 lots, down by 234 lots from a day earlier. LME tin inventories were 13,130 mt, up 200 mt from a day earlier.

LME tin prices slightly advanced on easing monetary policy from Japan during the Asian trading hours, but fell to hit a low at USD 24,605/mt during the European trading hours. Finally, LME tin prices closed at USD 24,787/mt, down USD 243/mt from a day earlier.

Japan’s central bank announced to keep interest rate unchanged and set target to keep inflation under 2% on Tuesday. Meanwhile, it decided to pushed YEN 13 trillion of financial assets per month and set no deadline. In Spain, the subscription for Spanish 10-year bond hit historical high at EUR 24 billion.
With regard to economic data, the NAR announced on Tuesday that the US existing housing sales for December was 4.94 million units, lower than 5.1 million units expected, and down 1.0%. However, the US existing housing inventory was only 1.82 million units, the lowest since 2001. The US home values for 2012 rose by 5.9%, the largest gain since 2006. As of 4Q 2012, The US housing prices have been advancing four fifth consecutive quarter, suggesting that the US housing market is recovering.  Germany ZEW economic sentiment index for January rose by 31.5, the highest since May 2010 and better than 12.0 expected and previous reading of 6.9. The US Richmond Fed Manufacturing Index for January was -12, sharply down from 5 recorded a month earlier.

In China, China’s central bank injected RMB 43 billion liquidity through 7-day reverse purchase on January 22nd, with bidding rate flat at 3.35%. This week’s reverse purchase totaled RMB 150 billion. Market expects that the central bank will increase liquidity injection before China’s New Year holiday.

The US States House of Representatives will vote on Wednesday on temporary extension to the debt ceiling, which will affect base metal price movement. SMM expects that LME tin prices will find support at USD 24,500/mt and Shanghai tin spot prices will move between RMB 158,500-161,500/mt on Wednesday.


 

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SMM Tin Market Morning Review (2013-1-23)

Price Review & Forecast 10:20:27AM Jan 23, 2013 Source:SMM

SHANGHAI, Jan. 23 (SMM) -- LME tin for delivery in three months opened at USD 25,030/mt and closed at USD 24,787/mt overnight, down by USD 243/mt from a day earlier, with the highest price at USD 25,075/mt and the lowest price at USD 24,605/mt. Daily trading volumes were 344 lots, up by 281 lots. Positions were 22,747 lots, down by 234 lots from a day earlier. LME tin inventories were 13,130 mt, up 200 mt from a day earlier.

LME tin prices slightly advanced on easing monetary policy from Japan during the Asian trading hours, but fell to hit a low at USD 24,605/mt during the European trading hours. Finally, LME tin prices closed at USD 24,787/mt, down USD 243/mt from a day earlier.

Japan’s central bank announced to keep interest rate unchanged and set target to keep inflation under 2% on Tuesday. Meanwhile, it decided to pushed YEN 13 trillion of financial assets per month and set no deadline. In Spain, the subscription for Spanish 10-year bond hit historical high at EUR 24 billion.
With regard to economic data, the NAR announced on Tuesday that the US existing housing sales for December was 4.94 million units, lower than 5.1 million units expected, and down 1.0%. However, the US existing housing inventory was only 1.82 million units, the lowest since 2001. The US home values for 2012 rose by 5.9%, the largest gain since 2006. As of 4Q 2012, The US housing prices have been advancing four fifth consecutive quarter, suggesting that the US housing market is recovering.  Germany ZEW economic sentiment index for January rose by 31.5, the highest since May 2010 and better than 12.0 expected and previous reading of 6.9. The US Richmond Fed Manufacturing Index for January was -12, sharply down from 5 recorded a month earlier.

In China, China’s central bank injected RMB 43 billion liquidity through 7-day reverse purchase on January 22nd, with bidding rate flat at 3.35%. This week’s reverse purchase totaled RMB 150 billion. Market expects that the central bank will increase liquidity injection before China’s New Year holiday.

The US States House of Representatives will vote on Wednesday on temporary extension to the debt ceiling, which will affect base metal price movement. SMM expects that LME tin prices will find support at USD 24,500/mt and Shanghai tin spot prices will move between RMB 158,500-161,500/mt on Wednesday.