SHANGHAI, Jan. 28 (SMM) -- LME tin for delivery in three months opened at USD 24,680/mt and closed at USD 24,644/mt last Friday, up by USD 84/mt from a day earlier, with the highest price at USD 24,840/mt and the lowest price at USD 24,400/mt. Daily trading volumes were 452 lots, up by 75 lots. Positions were 22,922 lots, down by 207 lots from a day earlier. LME tin inventories were 13,195 mt, up 60 mt from a day earlier.
LME tin prices advanced to hit a high at USD 24,840/mt during the Asian trading hours. During the European trading hours, LME tin prices fell to hit USD 24,400/mt, but later pared certain losses to close at USD 24,644/mt, up USD 84/mt from a day earlier.
According to the US Department of Commerce, the US new housing sales for December fell sharply by 7.3% MoM, and the seasonally-adjusted new housing sales annualized to 369,000, lower than 385,000 expected. However, the housing sales still grow by 13.9% from a year earlier. The US Department of Commerce expects that total housing sales for 2012 is around 367,000 units, up 20% YoY, the highest since 2009. Despite sharply year on year growth, the new housing sales for 2012 are the third worst since 1963. The UK’s initial GDP for 4Q fell 0.3%, better than market expectation. The Germany’s January IFO business sentiment index increased from 102.4 to 104.2.
According to the ECB, many banks paid back more debts than the EUR 137 billion expected. The Fitch cut Cyprus’ credit rating, and put its outlook into negative.
In China, the National Bureau of Statistics (NBS) revealed that China’s industrial profits for 2012 totaled RMB 5.56 billion, up 5.3% YoY. Profits for December were RMB 895.2 billion, up 17.3% YoY.
LME base metal largely drifted lower. The euro surged, weighing down the US dollar. The US equity markets rallied across the board, with the S&P 500 index broke through 1,500 points.
Close attention should be paid to the US GDP for 4Q, the Fed interest rate meeting result for January and the nonfarm employment data for January. SMM expects that LME tin prices will meet strong resistance at 5-day moving average, and Shanghai tin spot prices will move between RMB 157,500-160,500/mt on Monday.