SHANGHAI, Feb. 6 (SMM) – LME tin prices opened at USD 24,860/mt and closed at USD 24,975/mt overnight, down by USD 24/mt from a day earlier, with the highest price at USD 24,975/mt and the lowest price at USD 24,757/mt. Daily trading volumes were 237 lots, up 49 lots. Positions were 23,681 lots, down 121 lots from a day earlier. LME tin inventories were 13,315 mt, falling 310 mt from a day earlier.
LME tin prices mainly moved between the 5-and 20-day moving averages. The eurozone PMI data grew to a 10-month high in January, and the US service sector also showed expansion in January. However, market was weighed down by the political uncertainty in Spain and Italy.
The US President Obama appealed the Congress to adopt any measure to put off the automatic spending cuts on March 1. In Europe, the eurozone service PMI and final reading of comprehensive PMI, as well as service PMI for Germany and the UK all exceeded previous figures and forecasts in January. Of them, the eurozone comprehensive PMI increased to a 10-month high of 48.6, signifying an economic recovery in the eurozone. The Euro rose 0.51% against the dollar.
Chief of Japan’s central bank Masaaki Shirakawa submitted resignation on January 5, strengthening market expectations for more easing policies.
In domestic markets, the People’s Bank of China conducted RMB 450 billion of 14-day reverse repos on Tuesday with the rate unchanged at 3.45%, providing liquidity for the Chinese New Year. Besides, new lending issued by the four largest banks should be RMB 370 billion in January.
The US dollar index ended 0.04 lower, while US and European equities, as well as LME base metals prices, increased.
LME tin prices will meet strong resistance at USD 25,200/mt, and spot tin prices in China will be flat at RMB 161,000-162,500/mt on January 6.