SHANGHAI, Apr. 8 (SMM) - LME tin market last Friday opened at USD 22,800/mt, with the highest and lowest level of USD 22,883/mt and USD 22,616/mt, respectively. Finally, LME tin market closed at USD 22,883/mt, up USD 118/mt from a day earlier. Trading volumes were 288 lots, up 88 lots. Positions were 21,009 lots, up 59 lots. Inventories were down 85 mt to 14,400 mt.
LME tin market changed in a tight band last Friday during Asian trading hours, but dropped during European trading hours after the US released lower-than-expected non-farm payrolls, down to USD 22,616/mt. At the tail of trading, LME tin market pared some losses, and closed at USD 22,883/mt up USD 118/mt. The US non-farm payrolls for March added 88,000, the lowest since last June, dampening market confidence.
US employment data was a focus of markets during the Qingming holiday in China. US Market ADP employment increased by 158,000, much lower than the forecast of 197,000, and the number of non-farm employment only increased by 88,000, falling short of the 190,000 expected, and hitting a 9-month low. US unemployment rate fell from 7.7%, to 7.6%, but that is due mainly to decreasing employment rate, showing more people stopped looking for jobs. With growing uncertainty towards US economic recovery, European and US stocks and commodities fell across the board.
The Reserve Bank of Australia, Bank of UK and European central bank all maintained monetary policies unchanged. But Bank of Japan announced massive easing policies including expanding government bonds purchasing, prolonging deadlines for Japanese government bonds, increasing risk assets purchasing and advancing open assets purchase plan, and this caused JPY against the US dollar to plunge by 3.52% during the week.
In other markets, the US dollar index was off 0.24 to end at 82.54. The US and European equities markets fell across the board, and most LME metals closed lower.
The weaker-than-expected US non-farm payrolls has retriggered market worries, leaving a bearish sentiment. The resistance at the USD 23,100/mt mark remains strong, and LME tin market is expected to hold in a tight price band today. No low-priced goods is available in the domestic tin market, and SMM expects domestic spot tin prices will hover between RMB 149,500-152,500/mt on Monday.