SHANGHAI, Feb. 19 (SMM) -- LME tin for delivery in three months opened at USD 24,900/mt and closed at USD 24,570/mt overnight, down by USD 280/mt from a day earlier, with the highest price at USD 24,900/mt and the lowest price at USD 24,305/mt. Daily trading volumes were 477 lots, up by 361 lots. Positions were 23,977 lots, down by 89 lots from a day earlier. LME tin inventories were 13,450 mt, up 75 mt from a day earlier.
LME tin prices fell all the way and accelerated declines at the tail of the Asian trading hours due to strong US dollar and bearish trading sentiment in China. Finally, LME tin prices hit a low at USD 24,305/mt and close at USD 24,570/mt, down USD 280/mt from a day earlier. This was mainly due to Investors' concern over global economic outlook and lower-than-expected manufacturing data from the euro zone and the US.
ECB President Mario Draghi pointed out that stale interest rate will be of significance for economic growth and commodity price stability. If exchange rate of euro continues to grow, economic growth in the euro zone may fall further. It is expected that euro may stabilize around 1.3310.
In China, new loans for January exceeded RMB 1 trillion, and total financing was RMB 2.54 trillion, up RMB 1.56 trillion from a year earlier. The ample liquidity was mainly attributed to economic growth and seasonal factor, but loans may slightly fall in February. Considering stable demand from real economy, new loans for the whole year of 2013 may increase. However, given the upward trend of CPI, China’s central bank may release measure to curb liquidity. Nonetheless, in order to avoid interest rate spread between China and overseas countries, China's interest rate may quite likely to stay stable in the near future.
SMM expects that LME tin prices will fall to find support at USD 24,000/mt in the short term, and Shanghai tin spot prices will move between RMB 160,000-162,500/mt on Tuesday.