Price Indicator

Focus:

1. The Fed Maintains Interest Rates
2. The Fed's interest rate is at the level 5,25%-5,50%

Market Review

ICDX tin prices rose 1.20% compared to the previous week, supported by weakening in the performance of the USD currency after the meeting The US Federal Reserve marked the end of the interest rate hike cycle and indicated the possibility of a rate cut next year.

The Federal Reserve kept interest rates unchanged on Wednesday at a range of 5.25%-5.50%. Additionally, US central bank chief Jerome Powell said historic monetary policy tightening is likely to end as inflation falls faster than expected and discussions on cutting borrowing costs are imminent. In the dot plot, which estimates the potential future direction of monetary policy, 17 of 19 Fed officials project the policy interest rate will be lower at the end of 2024 than it is now, with the median projection showing the interest rate will fall three-quarters of a percentage point from 5 .25%-5.50% currently. Performance fluctuations a sloping dollar is a positive sentiment for tin, and vice versa when the dollar's performance strengthens it becomes a negative sentiment for tin, because tin prices are transacted in USD.

Market View

Mixed Sentiments Hit the World's Largest Tin Consumer

China is the world's largest tin consumer, where demand from Panda Country can influence world tin prices in the future, when demand rises, prices follow and vice versa, this cannot be separated from China's economic conditions.

A few moments ago, Bank Central of China agreed to keep its medium-term interest rates stable according to market expectations. The People's Bank of China (PBoC) has released the one-year and five-year basic loan interest rates (LPR). Results show that the PBoC held the one-year LPR at 3.45% and 4.2% for the five-year tenor. This is in accordance with the consensus in a poll of 28 market observers conducted this week, all participants predicted that both the one-year LPR and the five-year tenor would not change, namely at 3.45% and 4.2% respectively. The People's Bank of China (PBOC) increased liquidity injections through medium-term policy loans last week, while keeping interest rates unchanged. The central bank injected net fresh funds of 800 billion yuan ($112.22 billion) into the banking system through medium-term lending facility (MLF) loans, recording the largest monthly increase in history. The hope is that this policy can trigger China's economic growth.

Previously, China reported that its industrial production increased at the fastest pace since February 2022 in November, although retail sales growth fell short of expectations, indicating an uneven recovery in the world's second-largest economy. China's industrial output grew 6.6% in November compared with a year earlier, the country's National Bureau of Statistics said on Friday. The figure beat expectations of 5.6% in a Reuters poll and followed a 4.6% rise in October. Retail sales rose 10.1% in November compared with a year ago, the fastest pace of growth since May, although analysts expect a 12.5% ​​jump following the bottom in 2022. Retail sales rose 7.6% in October.

WEEKLY ECONOMICS DATA AND AGENDA

Source : ICDX Research