SMM Tin Market Morning Review (2014-1-6)

SHANGHAI, Jan. 6 (SMM) – LME tin opened at USD 22,000/mt last Friday. The metal climbed to USD 22,001/mt before tumbling to USD 21,300/mt on worries over Indonesia’s restrictions on tin ore exports and disappointing Chinese manufacturing data. China’s official manufacturing PMI, released by the National Bureau of Statistics (NBS) and China Federation of Logistics & Purchasing (CFLP), slipped 1.4% MoM to 54.6 in December. Nevertheless, LME tin did recover some of its previous losses before closing USD 471/mt higher at RMB 21,579/mt. Trading volumes added 109 lots to 712 lots, while positions held flat at 19,081 lots. LME tin inventories grew 45 mt to 9,705 mt. 

LME tin should test support at USD 20,800/mt on Monday. Falling LME tin may drag spot tin prices in Shanghai down to RMB 138,000-142,000/mt.