SHANGHAI, Feb. 4 (SMM) – LME tin price last Friday opened at USD 24,795/mt, with the high end of the price range USD 24,975/mt, and finding support at USD 24,770/mt. Finally, LME nickel prices closed at USD 24,954/mt, up USD 129/mt. Trading volumes decreased by 280 lots, to 195 lots, and total position increased by 295 lots, to 23,660 lots. Inventories grew by 205 mt, to 13,625 mt.
According to US Labor Department, the seasonally adjusted number of US non-farm employment in January was 157,000, slightly lower than expectations and the previous data. Unemployment rate rose to 7.9%, but the revised employment data in November and December 2012 was up. Besides, the ISM shows US PMI in January rose to 53.1, its highest in nine months (since April 2012), and showing US manufacturing expands further. Final CCI from University of Michigan in January unexpectedly rose to 73.8. The major economic data reflected US economy continued to grow, and helping ease concerns that US is in the face of recession.
In Europe, Markit announced last Friday euro zone final January PMI was 47.9, hitting a eleven-month high, and better than expected and the preliminary 47.5, with the final data for December 46.1. Germany's January PMI was revised to 49.8. The improving manufacturing data shows euro zone economy is recovering.
In China, the CFLP announced China's January PMI fell to 50.4, while HSBC's January PMI for China was revised to a two-year high of 52.3. Besides, the SAFE announced domestic international current account surplus in 2012 was USD 213.8 billion, and capital and financial account deficit was USD 117.3 billion, and international reserve assets increased by USD 96.5 billion.
LME base metals prices rose across the board. The euro soared and once broke through 1.3700; US stocks also outperformed, with the Dow Jones Industrial Average stood at 14,000 for the first time since October 2007.
LME tin prices should try to break through USD 25,250/mt today. In China, transactions will be muted before the Chinese New Year holiday, but cargo holders will maintain prices firm, and spot prices should remain between RMB 159,500-161,500/mt.