Home / Metal News / Copper / SMM Tin Market Morning Review (2013-3-6)
SMM Tin Market Morning Review (2013-3-6)
Mar 6,2013 09:59CST
price review forecast
LME tin prices will advance to test USD 23,700/mt, and Shanghai spot tin prices will move between RMB 155,500-158,000/mt on Wednesday.

SHANGHAI, Mar. 6 (SMM) -- LME tin for delivery in three months opened at USD 23,400/mt and closed at USD 23,606/mt overnight, up by USD 220/mt from a day earlier, with the highest price at USD 23,606/mt and the lowest price at USD 23,400/mt. Daily trading volumes were 335 lots, up by 35 lots. Positions were 22,622 lots, down by 554 lots from a day earlier. LME tin inventories were down by 90 mt to 13,485 mt.

LME tin prices fluctuated higher overnight. Market was boosted by signals from China’s National People's Congress and the Chinese Political Consultative Conference, the US February service PMI and historical high of the Dow Jones Industrial Average.

Both Germany and France reported improved PMI in service sector in February. The euro zone February service and composite PMI finalized at 47.9, up 0.6 compared to previous reading and market expectation. Following the data release, the US dollar index fell to weekly low at 81.90. Based on poll result from Italy, a quarter of Italian voters were support for a second round of election. However, similar impasse may still repeat, adding uncertainties surrounding the Italian election.

The US ISM non-manufacturing PMI for February was 56, higher than market expectation. ICSC-Goldman Store Sales rose by 0.2%. Meanwhile, it is expected that Janet Yellen, the most promising successor of Fed Reserve, may continue QE, which will be helpful for the US economic recovery. In response, the Dow Jones Average and Standard & Poor rose by 0.89% and 0.96% respectively, with the Dow Jones Average hitting historical high.

The Australian central bank settled interest rate for March at 3.0%, flat with previous reading and market expectation. The bank said it may adjust policy based on assessment on economic outlook, but believed that risks for global economy to fall is reducing. China’s government work report pointed out that China aims 7.5% GDP growth, 3.5% CPI growth, 13% M2 Growth in 2013, which was largely within market expectation. The data hinted that China’s monetary policy may shift from loose to neutral stance in 2013.

Close attention should be paid to revised Q4 GDP from the euro zone, the ADP employment data from the US and interest rate meeting of Canadian central bank. SMM expects that LME tin prices will advance to test USD 23,700/mt, and Shanghai spot tin prices will move between RMB 155,500-158,000/mt on Wednesday.

LME tin price
Shanghai tin spot price

For queries, please contact Frank LIU at liuxiaolei@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news