ICDX's tin price strengthen towards the close of October and was observed moving around $25,000 per ton in line with the weakening US dollar causing tin prices to rise sharply and optimism over China's plan to reopen its economy through easing the zero Covid policy, triggering an increase in tin prices.
The release of the US Consumer Price Index m/m data by the Bureau of Labor Statistics which was reported to be 0.4% lower than forecast at 0.6% for October, supporting market perceptions that the Fed is considering slowing the pace of interest rate hikes at its next meeting. Expectations of a slowdown in the pace of The Fed's policy made the dollar index slump, this supported tin's performance to close higher. The weakening US dollar makes tin priced in dollars seem expensive to holders of other currencies.
China on Friday, November 11 relaxed some of its Covid rules, shortening the two-day quarantine for close contacts of infected people and for incoming travelers, and removing penalties for airlines for carrying too many cases. The easing of restrictions comes a day after President Xi Jinping chaired his new Politburo Standing Committee in a meeting on COVID, cheering markets even as many experts warned that the move was gradual and reopening may still be a long way off. Under the new rules, the centralized quarantine time for close contacts and foreign nationals was shortened from seven to five days. The requirement for a further three days in home isolation after the centralized quarantine remains.
Even though during last week's trade the Covid cases in China subsided, at the beginning of this week the region in China was again hit by a resurgence of Covid cases. Reported 269 new domestically transmitted symptomatic cases and 8,444 asymptomatic cases, compared to 255 symptomatic cases and 8,989 asymptomatic cases on November 19, 2022, bringing further weakness to Timah as Guangzhou, a manufacturing hub housing 19 million people, is currently is battling its largest outbreak in China, with new daily infections of COVID-19, raising fears that the outbreak is reaching a scale matching that of the Shanghai outbreak earlier this year.
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Sumber: ICDX Research