SHANGHAI, Feb. 5 (SMM) – LME tin price overnight opened at USD 25,000/mt, with the high end of the price range USD 25,200/mt, and finding support at USD 24,851/mt. Finally, LME tin prices closed at USD 24,999/mt, up USD 45/mt. Trading volumes decreased by 7 lots, to 188 lots, and total position increased by 141 lots, to 23,802 lots. Inventories remained flat at 13,625 mt.
The positive manufacturing PMI in Europe and US released last Friday pulled up base metals prices. But the poor US employment data added to market uncertainties. LME tin price increases slowed and struggled around USD 25,000/mt in the day, and finally closed at USD 24,999/mt.
According to Spain's Labor Department, the number of unemployment in January increased by 132,000, compared to the forecasts of a 150,000 increase, and the number in the previous month decreased by 59,100. Spain's unemployment rate in January rose 2.7%, while the rate in the previous month was down 1.2%, with the number of unemployment reaching 4.98 million mt. It was reported that Spain's Prime Minister, Mariano Rajoy, and members of his governing Popular Party accepted or made under-the-table payments.The improving political scandal is depressing market confidence towards the country's debt reconstruction. As a result, Spain's 10-year government bond yields rose by 10 basis points to 5.43%, and Italy's 10-year government bond yields also advanced 9 basis points, to 4.42%. Besides, euro zone December PPI dropped for the second consecutive month to 0.2%; euro zone Sentix's investor confidence index in February rose for the sixth straight month, to -3.9. US Commerce Department announced US finished product orders in December rose by 1.8%, to USD 484.76/mt billion, slightly lower than forecasts.
Due to negative news from Spain, the euro plunged. LME base metals prices were mixed, and European and US stocks markets were sluggish.
Final January service PMI in China and euro zone, and euro zone December retail sales data will be released today. The better-than-forecast data will give support to the euro.
LME tin prices should fluctuate at high levels today. Spot prices should move between RMB 160,500-162,500/mt.