SHANGHAI, Feb. 11 (SMM) – LME tin overnight started at USD 18,335/mt and later hovered between USD 17,950-18,545/mt before ending down USD 275/mt at USD 18,225/mt. Trading volumes decreased 112 lots to 241 lots, while positions gained 232 to 21,256. LME tin inventories shed 10 mt to 11,840 mt on Tuesday.
China’s CPI rose a mere 0.8% YoY in January, the lowest growth in over five years and well below December’s increase, while PPI declined 4.3% YoY, both pointing to a further slowdown in the Chinese economy. This, combined with prevailing caution ahead of the Chinese New Year holiday, sent base metals prices down across the board on Tuesday.
Base metals markets should continue digest China’s negative economic indicators on Wednesday. Investors should keep an eye on whether Greece’s finance minister will reach a consensus with euro zone officials on debt extension in the European and US trading hours. US official crude inventory data due for release late on Wednesday will affect crude prices and commodities prices. LME tin is expected to hover between USD 18,000-18,500/mt, while spot tin prices in China should range between RMB 125,000-128,000/mt.