SMM Tin Market Morning Review (2013-10-25)

SHANGHAI, Oct. 25 (SMM) – LME tin prices overnight opened at USD 22,771/mt, with the high end of the price range USD 22,940/mt, and finding support at USD 22,731/mt. Finally, LME nickel prices closed at USD 22,885/mt, up USD 165/mt from the previous trading day. Trading volumes decreased by 127 lots, to 162 lots, and total positions decreased by 89 lots, to 20,689 lots. Inventories grew by 50 mt, to 13,110 mt.

LME tin prices overnight fluctuated around the 5-day moving average. As upbeat manufacturing data from China and the US counteracted disappointing figures from Europe, LME tin prices closed at USD 22,885/mt, up USD 165/mt. Eurozone PMI in October dropped to 51.5, lower than the 52.5 expected, but the market still gained confidence from US economic data since manufacturing activities increased across the US. Kansas City Fed manufacturing index in October rose to 6, compared to 2 in September.

LME tin prices will test support at USD 22,600/mt today, and met resistance at USD 23,300/mt. Spot prices in Shanghai should move between RMB 147,000-151,000/mt.