SHANGHAI, Feb. 26 (SMM) -- LME tin for delivery in three months opened at USD 23,185/mt and closed at USD 23,175/mt overnight, up by USD 75/mt from a day earlier, with the highest price at USD 23,175/mt and the lowest price at USD 23,025/mt. Daily trading volumes were 331 lots, down by 155 lots. Positions were 22,950 lots, up by 466 lots from a day earlier. LME tin inventories were 13,650 mt, up 70 mt from a day earlier.
LME tin prices still moved below 5-day moving average, and find support at USD 23,160/mt. Prices finally closed at USD 23,175/mt, up USD 75/mt from a day earlier. HSBC China manufacturing PMI for February fell blow four-month low, dampening market confidence. In addition, the development of Italian‘s financial election also exerted great impact on market. Further, market concern over automatic spending in the US grew.
On the macroeconomic front, the Federal Reserve Bank of Chicago National Activity Index was -0.32, below previous reading of 0.25. The Federal Reserve Bank of Dallas manufacturing index for February was 2.2, blow previous reading of 5.5. The downbeat economic data weighed down the US equity market. China HSBC’s manufacturing PMI for February was 50.4, below than 52.2 expected and previous reading of 52.3, the lowest in four months, suggesting slower recovery pace in China’s manufacturing sector.
In neighboring market, the US dollar index rose by 0.39 to 81.86. The US equity market fell after initial surge, with major three stock indexes down by 1.5%. LME base metal prices also pared early gains at the tail of the trading.
Close attention should be paid to the Italian presidential election today. LME tin prices temporarily stabilized around USD 23,160/mt, and shall continue to test support at this level. In China’s spot market, spot tin prices may stabilize between RMB 155,500-158,000/mt in the following week.