SHFE 2304 Tin Closes up 1.37% on US Fed's Slower Rate Hike

SHANGHAI, Mar 23 (SMM) - On the fundamentals, SHFE tin warrants dropped slightly. Spot trading became slack with the rise in tin prices. The premiums of deliverable spots maintained stable, while those of small brands shrank slightly. The supply of imported tin was high.

SHFE 2304 tin contract opened high and moved rangebound yesterday. The contract closed at 180,320 yuan/mt, up 1.37%. The open interest decreased by 7,695 lots to 45,187 lots.

The US Fed slowed down the rate hike last night as expected and raised the rates by 25 basis points. But the hawkish Fed stated that there is no plan to cut interest rates in 2023. The current tin prices were still restricted by poor demand. Downstream processing enterprises only purchased on dips. Therefore, eyes should be focused on following recovery of consumer confidence and the operating rates of terminal companies.