SHANGHAI, Feb. 7 (SMM) – LME tin prices opened at USD 25,048/mt and hit an intraday low of USD 24,750/mt overnight due to political uncertainty in Europe and cautious sentiment before the release of interest rate decision for the Bank of England and the European Central Bank. Prices closed at USD 24,780/mt, down by USD 195/mt from a day earlier, with the highest price at USD 25,048/mt. Daily trading volumes were 140 lots, down 97 lots. Positions were 23,857 lots, up 176 lots from the previous trading day. LME tin inventories were 13,275 mt, falling 40 mt from a day earlier.
Base metals were mainly influenced by the political situation in Europe. In Italy, support for Silvio Berlusconi's People of Freedom party rose to 20.4%, and the country’s 10-year bond yields further increased 13 base points to 4.58%. Besides, the Spanish Prime Minister’s corruption scandal reported no further progress, with the country’s long-term lending cost remaining at a high of 5.45%. Thus, the Euro dropped 0.43% against the dollar.
With respect to economic data, Germany’s manufacturing orders grew 0.8% MoM in December after seasonal adjustment, compared with the 0.9% growth expected and the decline of 1.8% during the previous month. The manufacturing orders before seasonal adjustment staged a decline of 9.2% at an annualized rate in December. Ivey PMI for Canada was 58.9 in January, above the 54 expected and the previous figure of 52.8.
The US dollar index increased 0.22 overnight and LME base metals fell across the broad.
The Bank of England and the European Central Bank will announce interest rate decision for February on January 7, and the US initial jobless claims will also be released. Besides, Congressional hearing of the next governor of the Bank of England Mark Carney, the economic growth forecast by the European Commission and EU summit will also affect market on Thursday.
Spot tin prices in China are expected to remain at RMB 161,000-162,500/mt on January 7.