SHANGHAI, Mar. 13 (SMM) -- LME tin for delivery in three months opened at USD 23,620/mt and closed at USD 23,852/mt overnight, up by USD 51/mt from a day earlier, with the highest price at USD 23,825/mt and the lowest price at USD 23,620/mt. Daily trading volumes were 193 lots, up by 92 lots. Positions were 20,993 lots, down by 86 lots from a day earlier. LME tin inventories were 13,600 mt, up 5 mt from a day earlier.
LME tin prices slightly slipped during the Asian trading hours on decline in China’s stock market. However, LME tin prices regained upward momentum during the European trading hours to close at USD 23,825/mt, up USD 51/mt from a day earlier.
During the Asian trading hours, Asian stock markets all slipped, with the Shanghai Composite Index falling by over 1% and moving below 2,300 points again. Therefore, LME nickel drifted lower, despite of a high opening. However, during the European and US trading hours, LME nickel prices rallied on weak US dollar and finally closed at USD 17,003/mt, up USD 153/mt from a day earlier.
The report from the US Department of Labor revealed that job vacancy for January increased to 3.69 million, up 8% compared to 3.61 million in December. Number of unemployed people was 12.33 million, which means that 3.3 people will compete for 1 job, which is lower than 3.4 in December, suggesting that employment market is recovering.
The UK’s trade deficit for January narrowed, but the industrial output for January unexpected fell by 1.2% MoM, higher than 0.1% expected and previous reading of 1.1%. Besides, the monthly rate of manufacturing for January contracted by 1.5%, far below market expectation. The weak economic data fueled market concern that the UK’s economy may slip into anther recession.
Chinese People's Political Consultative Conference held its closing ceremony on Tuesday, but reform and policies from the conference were below market expectation. Besides, China’s central bank conducted RMB 26 billion repos operation, fueling concern that China’s central bank may tight liquidity.
The US will announce retail sales data on Wednesday. SMM expects that LME tin prices will meet resistance at USD 23,800-24,000/mt and Shanghai nickel spot prices will move between RMB 154,000-157,000/mt on Wednesday.