SHANGHAI, Jun. 4 (SMM) – LME tin prices overnight opened at USD 21,000/mt, with the high end of the price range USD 21,250/mt, and finding support at USD 20,856/mt. Finally, LME tin prices closed at USD 21,200/mt, up USD 275/mt. Trading volumes decreased by 193 lots, to 315 lots, and total position increased by 14 lots, to 20,671 lots. Inventories fell by 25 mt, to 13,910 mt.
US ISM manufacturing index unexpectedly fell below 50, to 49, showing US manufacturing began to shrink. Meanwhile, US construction spending in May was 0.4%, also much lower than forecasts. The sluggish data shows slow US economic recovery and weighed on commodity market. But concerns that the US Federal Reserve will quit Quantitative Easing also eased, so the US dollar index plummeted, boosting LME tin prices to close at USD 21,200/mt, up USD 275/mt.
LME tin prices will find support at USD 20,800/mt, and spot prices in Shanghai should move between RMB 143,000-145,500/mt.