SHANGHAI, Feb. 23 (SMM) -- LME tin prices opened at USD 32,300/mt overnight, and closed at USD 31,400/mt, down by USD 1,000/mt from a day earlier, with the highest price at USD 32,400/mt and the lowest price at USD 31,400/mt. Daily trading volumes were 258 lots and positions were 20,055 lots. LME tin inventories were down by 10 mt to 17,530 mt.
LME base metal prices slumped on February 22nd, as tension in Libya led to oil price hike. Market concerned that turbulence in Libya may disturb global economic recovery pace, thus may investors stood at the sideline and adopted a wait-and-see attitude. LME tin prices slumped by USD 1,000/mt or down by 3.09%, falling below 5-day and 10-day moving averages consecutively.
Violent confrontations between protesters and government supporters in Libya made oil price surge, as concern that oil output may be negatively affected triggered speculative buying. NYMEX crude oil contract for delivery in three months closed 6.4% higher to USD 91.74.
The US Conference Board announced on Tuesday that the US Consumer Confidence Index for February was the highest since February 2008.However, S&P/Case-shiller December home price index after seasonal adjustment fell for sixth consecutive months, suggesting relatively strong resistance for economy recovery.
The oil price hike raised concern over possible higher interest rate, dampening market sentiment. It is expected that base metal prices will experience corrections in the short time and dip-buying will support prices to certain extent, but overall upward price trend will remain intact. SMM expects that LME tin prices will receive support at USD 31,000/mt on February 23.
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