SMM Morning Review - 2010/12/2 Tin Market

SHANGHAI, Dec. 2 (SMM) -- LME tin market opened at USD 24,495 mt and ended at USD 25,000/mt overnight, up by USD 530/mt from a day earlier, with the highest price at USD 25,200/mt and the lowest price at USD 24,350 mt. Daily trading volumes were 668 lots and positions were 19,097 lots. LME tin inventories were up by 375 mt to 15,425 mt.

LME base metal prices largely ended with gains overnight, boosted by stronger euro and a slew of positive economic data. According to data from the US, the employment figure from ADP Employer Services increased by 93,000, the largest growth since November 2007, while the previous estimation was 69,000. Revised annual rate of QoQ US production rate of non-farm sector in Q3 was up by 2.3%, higher than previous reading of 1.9%. The US manufacturing index in November was 56.6, recording consecutive economy expansion for 16 months. Construction spending in October was also up by 0.7%, while the estimation was down by 0.4%. Meanwhile, China’s economic data also boosted base metal performance. China’s PMI in November climbed to a 7-month high. Further more, the US slipped on Wednesday and ended at 80.777.

Recent commodity price tumble created a good opportunity for dip-buying and strong PMI from the US and China is expected to support strong metal demand. SMM believes that LME tin prices will largely move between USD 24,000-25,000/mt and may even move higher on Thursday.

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