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SMM Tin Market Morning Review (2013-5-20)

iconMay 20, 2013 09:54
Source:SMM
LME tin market is expected to keep fluctuating, with the support at USD 20,500/mt. In domestic tin market, spot prices are expected to move between RMB 145,500-147,500/mt on Monday.
SHANGHAI, May 20 (SMM) - LME tin market last Friday opened at USD 20,900/mt, with the highest and lowest level of USD 21,100/mt and USD 20,816/mt, respectively. Finally, LME tin market closed at USD 20,974/mt, up USD 93/mt from a day earlier. Trading volumes were 255 lots, down 105 lots. Positions were 21,692 lots, down 223 lots. Inventories were down 120 mt to 14,075 mt. 
 
LME tin market fluctuated narrowly around USD 21,000/mt last Friday before finally ending at USD 20,974/mt, up USD 93/mt from a day earlier. The US consumer confidence hit a 6-year high in May, and economic leading indicators rose to a nearly 5-year high in April. The US dollar index climbed further, up to 84.371, weighing down metals prices.  
 
Most of US economic results released last Friday were positive. The Michigan Consumer Sentiment index rose to 83.7 in May, the highest since July 2007. The US Conference Board leading indicators grew 0.6% in April, the peak since October 2007. Those encouraging figures eased market worries over the US economy, and also drove up the dollar while strengthening some investors’ hope for the exit of asset purchase plan. A stronger dollar caused most metals to pare early gains, and the gold registered its seven consecutive day of declines, the longest losing streak since March 2009. 
 
Rumors reported that the European Central Bank (ECB) was investigating that how the banking sector will act to a negative deposit rate, suggesting that the ECB may take deposit rate into negative territory. Latest data reflect registration of new cars in the euro zone rose 1.7% in April YoY, bringing its 20th consecutive month of decline to an end. This suggests that automobile market in the region may be rebounding, sending European equities up across the board last Friday.  Italy’s new government took its first concrete steps last Friday, announcing 3 billion euros in economic stimulus packages, to ease pressures of households and workers amid the country’s longest-ever postwar recession.  
 
News reports that China’s President Xi Jinping personally presided over the drafting of reform plan to boost the economy. The reform plan will avoid new stimulus policies due to concerns over the deterioration of local government debt and real estate prices rallies. Disappointing economic data announced earlier caused some investment banks to cut the 2013 GDP estimate in the world’s second largest economy. Last Friday, China’s stock market closed up 1.38%, the highest since late March, helping support metals prices. The National Bureau of Statistics announced Saturday that housing prices in over 95% of medium and large cities rose in April MoM, resulting from rising land prices. The latest news said that the expansion of housing property tax pilot has been put on the agenda, defeating market expectations that control measures over the property market will be eased in late year.  
 
The US dollar index exceeded 84.1 seen last July to a new high since mid July 2010. US equities advanced across the board, all reaching new record highs. The euro index closed down for a fourth consecutive day, a drop of 0.37%. European equities finished higher, while Asian stock markets mostly ended up. LME metals prices closed up except nickel. 
 
A strong dollar leaves metals prices under pressures, causing LME tin to fail to break the USD 21,100/mt. LME tin market is expected to keep fluctuating, with the support at USD 20,500/mt. In domestic tin market, spot prices are expected to move between RMB 145,500-147,500/mt on Monday. 
 
 
LME tin market
domestic tin spot prices

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