SHANGHAI, May 21 (SMM) – On Wednesday night, SHFE 1507 tin contract lurched higher after opening at RMB 116,350/mt, buoyed by entry of longs and exit of shorts.
HSBC’s flash China manufacturing PMI for May missed forecasts, igniting hopes for stimulus measures. Bulls thus entered while bears exited, pushing the most active SHFE tin contract up further to RMB 120,400/mt on Thursday. Finally, the contract ended up RMB 3,350/mt or 2.89% at RMB 119,190/mt. Trading volumes were up 10,576 lots to 38,176 lots, and positions were up 794 to 6,916. The contract will rise to challenge RMB 121,000/mt during today’s night session.
HSBC’s flash China manufacturing PMI for May was 49.1. New export order sub-index fell to 23-month low of 48.6. Output sub-index hit 13-month low of 48.4. Discouraging data might leave room for the central government to unleash stimulus measures.