SMM Tin Market Morning Review (2015-10-15)

SHANGHAI, Oct. 15 (SMM) –LME tin opened at USD 15,650/mt on Wednesday. The metal touched day’s high of USD 16,175/mt and day’s low of USD 15,600/mt before closing up USD 405/mt at USD 16,050/mt. Trading volumes were up 58 lots to 282 lots, and positions were up 104 to 20,920. Inventories were unchanged at 4,470 mt. Consumer inflation in China slowed more than expected in September, exacerbating worries over growth in the world’s second largest economy. US retail sales and producer price index were also disappointing, sending the US dollar index to a 3-1/2 week low. A softer dollar boosted LME tin. LME tin should test support at USD 16,000/mt and meet resistance at USD 16,400/mt on Thursday. 

SHFE 1601 tin tracked LME tin up above RMB 100,000/mt on Wednesday night, but then fell back slightly. The most active contract should move between RMB 98,500-100,000/mt on Thursday. In China’s spot market, inflow of cheap tin from Yunnan Tin Group dragged down overall market prices recently. The rise in SHFE tin overnight should support spot tin prices between RMB 96,000-98,000/mt.