SHANGHAI, Apr. 12 (SMM) - LME tin market overnight opened at USD 22,880/mt, with the highest and lowest level of USD 22,950/mt and USD 22,675/mt, respectively. Finally, LME tin market closed at USD 22,750/mt, down USD 130/mt from a day earlier. Trading volumes were 255 lots, up 137 lots. Positions were 20, 731 lots, down 165 lots. Inventories were up 40 mt to 14,465 mt.
LME tin market overnight tracked lower during Asian trading hours, down briefly to USD 22,675/mt. During European trading hours, LME tin advanced initially but later fell back. The US reported the largest weekly decline in initial jobless claims since last November, boosting the market. Meanwhile, LME tin market was also supported by a falling dollar, euro hitting a 6-week high, and the lowest level of yield of Italian three-year bonds. However, LME tin weakened at the tail of trading, with prices closing at USD 22,750/mt, down USD 130/mt.
News from China overnight was mixed, and significantly affected the market. China's newly-increased RMB loans in March were RMB 1.06 trillion, higher than the RMB 0.85 trillion expected; M2 increased by 15.6% YoY, compared to the 14.6% growth expected, and M1 and M0 also reported sharp growth; forex receipts maintained a high level over a year. Domestic currency supply is sufficient since domestic economic stimulus policies and RMB appreciation prompt international capital to flow into China, and this boosted global capital market. The Shanghai Composite Index and Shanghai metals prices advanced initially but then rolled back early gains due to expectations of IPO resumption. The Xinhua News Agency released five articles during April 9-11 in favor of IPO resumption, and supervision institutions and the market cannot step aside the problem, with another IPO expected to be commenced soon.
As the number of US initial jobless claims last week decreased by 42,000, to 346,000, which hit a record low last seen in November 2012, the Standard & Poor's 500 Index and Dow Jones Industrial Average rose to new highs. Italy successfully auctioned three categories of government bonds totaling EUR 7.169 billion, meaning investor concerns over Italy's political situations eased, and the euro against the US dollar thus broke through 1.31.
In neighbor markets, the US dollar index was off 0.2 to 82.27. European and US equities advanced across the board, but LME metals market staged mixed performance, but improved compared with Asian trading hours.
Market focus is now on the euro-zone industrial production data and the US retail sales figures. SMM understands that LME tin will hover at the existing price band, and may come under downward pressures, with the low-end support at USD 22,500/mt. In domestic tin market, spot prices are expected to move between RMB 148,500-151,000/mt on Friday.