SHANGHAI, Apr. 24 (SMM) - LME tin market overnight opened at USD 20,800/mt, with the highest and lowest level of USD 20,850/mt and USD 20,490/mt, respectively. Finally, LME tin market closed at USD 20,600/mt, down USD 155/mt from a day earlier. Trading volumes were 237 lots, up 39 lots. Positions were 20, 401 lots, down 273 lots. Inventories were down 90 mt to 14,395 mt.
LME tin market was doing well in early trading, and climbed above the 5-day moving averages after opening, briefly reaching USD 20,850/mt. Later, the weaker-than-expected HSBC China manufacturing PMI for April caused domestic stock markets to drop, and so LME tin surrendered earlier gains. During European trading hours, a slew of disappointing PMI data from major economies added to market concerns over the global economic growth. As a result, LME tin extended declines, and finally ended at USD 20,600/mt.
The release of disappointing PMI of major economies undermined the market. The preliminary HSBC China manufacturing PMI for April came in at 50.5, far below market expectations of 51.5, sending stock market down below 2,200 points. The preliminary euro-zone composite PMI was unchanged at 46.5, but this was a 4-fouth low. In Germany, the largest economy in the euro zone, the national manufacturing, services and composite PMI all dropped below 50. Markets generally expect the European Central Bank to cut interest rate in the meeting next week, and this caused the euro against the dollar to fall below 1.30. In the US, the preliminary US manufacturing PMI dropped to 52, the lowest since last October. Those disappointing PMI figures demonstrate global manufacturing business activities have slowed down in April.
In other news, European Commission President José Manuel Barroso said that Europe has reached the political limits of its strict austerity measures thus far imposed on the EU’s crisis countries. His comments strengthened market expectations over a possible shift in Europe’s approach to austerity.
In other markets, the US dollar index was up 0.5% to above 83. The US and European equities markets advanced, and LME metals all closed lower, except lead.
The German IFO climate index and the US durable goods orders will be released today. If these results remain negative, market sentiment will be further depressed. LME tin is expected to test USD 20,400-20,500/mt, and no major changes will be staged in domestic spot tin market on Wednesday, with prices between RMB 141,000-143,500/mt.