SHANGHAI, Mar. 26 (SMM) -- LME tin for delivery in three months opened at USD 22,950/mt and closed at USD 23,140/mt overnight, up by USD 190/mt from a day earlier, with the highest price at USD 23,140/mt and the lowest price at USD 22,866/mt. Daily trading volumes were 291 lots, up by 25 lots. Positions were 20,074 lots, up by 119 lots from a day earlier. LME tin inventories were 14,110 mt, up 5 mt from a day earlier.
LME tin extended upward momentum and was the only product closed with gains overnight. Although positive sentiment from the Cypriot EUR 10 bailout agreement wanted, LME tin prices still advanced slightly to close at USD 23,130/mt, up USD 190/mt from a day earlier.
Market focus was on Cyprus. During the early European trading hours, the Cyprus and its international creditor finally reached an agreement on EUR 10 billion bailout, which eased market concern. However, Cyprus still faces risks for default, which trigger profit-taking. In response, LME nickel prices plunged to USD 17,000/mt. Later, negative came again. It was rumored that Eurogroup president said that the restructure of Cypriot banks will be example for banks in other euro zone members. Although the rumor was dispelled, market concern still weighed European stock market down by 0.3% points.
In the US, the Chicago Fed National Activity Index for February was 0.44, and the Dallas Fed Manufacturing Activity index was 9.9, both improving significantly. However, uptick in economic data failed to offset concern over the euro zone and failed to boost the US financial market.
In China, the Ministry of Finance announced that financial budget for 2013 was RMB 5.73 trillion, up 7.5% YoY. In addition, Guangdong province issued detailed rules for housing regulation, which emphasized housing price restriction and housing purchase restriction but did not mention 20% differential tax for second housing transaction. This shows that it still needs time for issuing of regulation has substantial impact on market.
Close attention should be paid to the US durable goods orders for February and consumer confidence index, which will affect base metal price movement. SMM expects that LME tin prices will test support at USD 23,100/mt and Shanghai tin spot prices will move between RMB 151,000-154,000/mt on Tuesday.