SHANGHAI, Feb. 21 (SMM) -- LME tin for delivery in three months opened at USD 23,994/mt and closed at USD 23,759/mt overnight, down by USD 226/mt from a day earlier, with the highest price at USD 23,995/mt and the lowest price at USD 23,650/mt. Daily trading volumes were 471 lots, down by 307 lots. Positions were 22,718 lots, down by 234 lots from a day earlier. LME tin inventories were 13,325 mt, up 10 mt from a day earlier.
The Fed interest rate meeting minutes hinted halt of QE in advance, renewing market concern. In addition, weak demand continued to depress market sentiment, despite positive economic data from the US. Therefore, LME tin prices extended losses to close at USD 23,759/mt, down USD 226/mt from a day earlier.
The Fed release January’s interest rate meeting minutes on Thursday, which hinted that policymakers remain divided on the timing and amount of bond purchases, with some members saying that the bond buying program may need to end before jobless rate falls below 6.5 percent.
In China, China’s premier Wen Jiabao presided a meeting, which emphasized continuous efforts to curb real estate market, including control on speculative purchasing and expanding property tax reform range.
Meeting minutes from central bank in the UK supported loose monetary policy.
In the macroeconomic data front, the US new housing start for January was 890,000, lower than market expectation and previous reading. Housing permit recorded 925,000, exceeding four years’ high. The PPI for January rose by 0.2%, rising for the fourth consecutive month. The consumer confidence index for February was -23.6 in the euro zone, while market expectation was -23.1.
The eurozone February manufacturing PMI and service PMI may be released today, which will affect base metal price performance. SMM expects that LME tin prices will fall further to USD 23,300/mt should support is no longer at USD 23,300/mt. In domestic spot market, spot tin prices may move between RMB 158,000-161,000/mt on Thursday.