SHANGHAI, Feb. 22 (SMM) -- LME tin prices opened at USD 32,400/mt overnight, and closed at USD 32,400/mt, up by USD 150/mt from a day earlier, with the highest price at USD 32,400/mt and the lowest price at USD 32,001/mt. Daily trading volumes were 192 lots and positions were 19,917 lots. LME tin inventories were down by 70 mt to 17,540 mt.
LME tin prices only moved narrowing during the Asian trading hours but rebounded back during the European trading hours, with price finally closing flat with opening price, up slightly from a day earlier. The US market was closed on February 21, resulting in contractions in trading volumes.
Turbulence in Arab countries curbed investors' risk appetite. In addition, market concerned that China's recent monetary tightening policy may dampen demand for base metals.
Recently, the vital factor boosting prices is the February's manufacture data from advanced economies like the European and the US. Data from the Euro zone released on February 22nd were strong. February's initial comprehensive PMI in the Euro zone reached 58.4, with PMI in the manufacture sector reaching to 59, the highest in 11 years. Germany IFO Economic Sentiment Indicator for February was also better than estimation. Based on February's manufacture data from the US local Federal Reserve, manufacture indicators to be released at intervals of February and March are still positive.
Tension in the Middle East will curb industrial production to certain extent, and will weigh base metal prices to certain extent in the short term. However, positive economic data from the US and the Europe will continue support base metal prices. Taking the above factors into consideration, SMM expects that LME tin prices will continue to fluctuate at high level, with current support at USD 31,000/mt and next target at USD 33,000/mt.
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