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SMM Tin Market Morning Review (2013-5-30)

iconMay 30, 2013 09:50
Source:SMM
LME tin market will remain under downward pressure, with support expected at USD 20,800/mt. In domestic tin market, spot prices are expected to move between RMB 144,000-146,500/mt on Thursday.

SHANGHAI, May 30 (SMM) - LME tin market overnight opened at USD 21,189/mt, with the highest and lowest level of USD 21,189/mt and USD 20,910/mt, respectively. Finally, LME tin market closed at USD 20,930/mt, down USD 170/mt from a day earlier. Trading volumes were 179 lots, up 18 lots. Positions were 20,780 lots, down 608 lots. Inventories were down 20 mt to 13,875 mt. 

 
LME tin market overnight drifted lower, down as low as USD 20,910/mt, and finally ended at USD 20,930/mt, down USD 170/mt from a day earlier. Market sentiment was hit by a weaker-than-expected employment data in Germany and a cut of global growth forecast by Organisation for Economic Co-operation and Development (OECD), sending LME tin down.
 
The European Central Bank (ECB) announced Wednesday that loans dropped 0.9% YoY in April. M3 money supply in the euro zone grew 3.2% YoY in April, compared with the 2.6% rise registered in March. However, the growth in M3 in April was chiefly because of technical revision of March’s data, while contraction in M3 in March was due largely to the Cyprus debt crisis. Despite the acceleration in M3 growth in April, the ECB will be less likely to abandon further easing policy as consumers and enterprises need accommodative monetary policy for consumption and investment. The Organization for Economic Co-operation and Development (OECD) cut the euro zone’s GDP growth for 2013 to a negative 0.6% and appealed the ECB to pay interest rate for deposits and urged the ECB to buy security loans from central enterprises. 
 
During the European session yesterday, the US dollar index gave back all the gains recorded in the previous day and sank to 83.47, pushing other currencies up. This is mainly because positive US economic data will hardly sustain and the OECD cut its forecast for US GDP growth to 1.9% on Wednesday. Besides, strengthening yen also drove the US dollar index down sharply.    
 
The International Monetary Fund (IMF) held a press conference in Beijing following negotiations with China regarding the fourth annual policy. David Lipton, first Deputy Managing Director of IMF, said the IMF has cut its forecast for China’s economic growth to 7.75%. The IMF pointed out that Chinese government debt has totaled nearly 50% of GDP. 
 
In other markets, LME base metals were mixed, with LME zinc leading the gains and LME tin the worst performer. The Dow Jones Industrial Average and NASDAQ shed 106.59 points and 21.37 points, respectively. 
 
A slew of economic reports will be released today, including the euro zone economy confidence index, the US employment data and the revised GDP for 1Q. The cut of global growth forecast has dampened investor sentiment. LME tin market will remain under downward pressure, with support expected at USD 20,800/mt. In domestic tin market, spot prices are expected to move between RMB 144,000-146,500/mt on Thursday. 
 
LME tin market
domestic tin market spot prices

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