SMM Tin Market Morning Review (2015-2-26)

SHANGHAI, Feb. 26 (SMM) – LME tin overnight started at USD 18,130/mt and then hovered between RMB 18,070-18,180/mt before ending up USD 70/mt at USD 18,125/mt. Trading volumes for three-month tin on the London Metal Exchange decreased 111 lots to 60 lots, while positions added 202 to 20,615. LME tin inventories shed 380 mt to 11,040 mt.

LME tin rose above USD 18,000/mt on Wednesday, testing support at the 5-day and 10-day moving averages. US Federal Reserve Chairwoman Janet Yellen hinted in her testimony before Congress that the Fed will not raise rates in the first half of this year, sending the US dollar index down to 94.20. The euro, however, climbed for a second straight month. Meanwhile, crude prices surged 3.5%, boosted by comments by Saudi Arabia’s Oil Minister that crude demand is growing.

A series of economic indicators will be released on Thursday, including the UK’s Q4 GDP, the euro zone’s economic climate index and US durable goods orders. LME tin is expected to remain in a USD 18,000-18,400/mt range. Spot tin prices in China should hover steadily between RMB 124,500-127,500/mt.