LME tin market overnight extended gains, reaching USD 21,075/mt. During the most trading, LME tin fluctuated narrowly below USD 21,000/mt before finally closing at USD 20,990/mt, up USD 141/mt from a day earlier.  China released a 9.3% industrial added value of enterprises above designated size, disappointing the market, but LME tin market made no great response to the news. The favorable US retail sales data supported the market.  

 

The US retail sales rose unexpectedly 0.1% in April, and sales, stripping out gasoline, were up 0.7%. The encouraging data boosted consumers confidence over economic growth, helping LME metals markets advance at the tail of trading and claw back some losses. After the release of positive jobless initial benefit claims, markets again shifted their attention to the report that the US Federal Reserve (Fed) may end the existing easing monetary policy. The US will announce a slew of economic data during the second half of this week, and comments to be made by the Fed officials will likely provide some clues, and this may add to market fluctuations. 

 

According to the report released by the Fitch, most European investors believe that the region has not tided over the hardest times, and the growth remains weak.  The European Central Bank Management Committee Visco said the European Central Bank (ECB) may push deposit interest rate to negative territory from zero, to support the faltering economy. He believes that the move will be effective, and the ECB will also stand ready for any unexpected results from the measure. In response to his remarks, the euro closed lower against the dollar. 

 

China’s urban fixed-assets investment from January to April rose a weaker-than-expected 20.6%, and the industrial added value of enterprises above designated size also missed market estimation, up 9.3%. The sales of social consumer goods in April were within market expectations. The disappointing results triggered some market players’ expectations over a possible cut in interest rate in the world’s second largest economy. Continuous declines in metals inventories, however, were interpreted by investors of a sign of demand improvement, offsetting the negative impact from poor figures. 

 

The US dollar index held at highs, and ended up 0.17%. The US equities were mixed, and the euro index was off 0.13%. Asian stock markets staged divided performance. The LME metals markets were also mixed. 

 

Germany will release its ZEW economic climate index. LME tin market overnight reached USD 21,000/mt, but failed to climb above USD 21,100/mt. LME tin market is expected to hold at highs to wait for more direction, and the support mark will be USD 20,500/mt. In the domestic tin market, the depletion of low-priced goods and limited supply from smelters’ unwillingness in sales will support the market, with prices expected between RMB 146,000-147,000/mt on Tuesday.