SMM Tin Market Morning Review (2013-12-5)

SHANGHAI, Dec. 5 (SMM) – LME tin opened at USD 22,500/mt on Wednesday. The metal hit a high of USD 22,900/mt on inspiring US economic indicators. The US private sector added 215,000 jobs in November, well above the 178,000 expected. Sales of new homes in the US jumped 25.4% to a seasonally adjusted annual rate of 444,000 in October, topping forecasts. LME tin, however, fell back to USD 22,500/mt afterwards before closing up USD 252/mt at USD 22,800/mt. Trading volumes added 133 lots to 418 lots, and positions were also up 108 lots to 19,006 lots. LME tin inventories fell 25 mt to 10,575 mt.

Investors are eyeing the outcome of the European Central Bank (ECB) and Bank of England (BOE)’s policy meetings due to be announced today. Worries over QE3-tapering will pressure tin prices, with LME tin expected between USD 23,000-22,400/mt on Thursday. In China’s spot tin market, year-end liquidity crunch will take a toll on consumption, with tin prices expected at RMB 139,000-143,000/mt.