SHANGHAI, Mar. 14 (SMM) -- LME tin for delivery in three months opened at USD 23,850/mt and closed at USD 23,975/mt overnight, up by USD 150/mt from a day earlier, with the highest price at USD 23,975/mt and the lowest price at USD 23,811/mt. Daily trading volumes were 246 lots, up by 53 lots. Positions were 21,007 lots, up by 14 lots from a day earlier. LME tin inventories were 13,640 mt, up 40 mt from a day earlier.
LME tin prices advanced all the way to close at USD 23,975/mt, up USD 150/mt from a day earlier.
The monthly rate of US retail sales for February was 1.1%, higher than 0.5% expected, rising for the fourth consecutive months, and the highest since September 2012, showing that the US economy is under recovery. This fueled the expectation that the Fed may tighten liquidity in advance, pushing up the US dollar and weighing down base metal prices. In addition, the US business inventory for January rose 1.0% MoM, and government deficit for February was USD 203.54 billion, lower than USD 205 expected. However, the picture is totally different in the euro zone. Industrial output for January fell by 0.4% in the euro zone, lower than 0.1% expected. In addition, yielding rate of Italy’s medium and long-term government bond rose, showing that investors’ concern over political stability in Italy grew. The weak economic momentum, unstable political condition and strong US dollar index weighed down the euro by 0.58%.
In China, Zhou Xiaochuan, President of the People’s Bank of China, expressed that to stable commodity price is central bank’s top priority in 2013. Meanwhile, growth for M2 was set at 13%, which means that monetary supply will be tighter than the previous two years.
The US dollar advanced by 0.42% to hit a high a 7-month high at 83.055. The US stock market rallied, with the Dow Jones Industrial Average rising for the 9th consecutive months, the largest increase in 16 years. LME base metal prices were mixed, with LME lead and tin advancing.
Close attention should be paid to Australia’s employment and interest rate result from Switzerland’s central bank. SMM expects LME tin prices will try to break through USD 24,000/mt and Shanghai spot tin prices will move between RMB 154,000-157,000/mt on Thursday.