SHANGHAI, Feb. 24 (SMM) -- LME tin prices opened at USD 31,700/mt overnight, and closed at USD 31,425/mt, up by USD 25/mt from a day earlier, with the highest price at USD 31,700/mt and the lowest price at USD 31,051/mt. Daily trading volumes were 261 lots and positions were 20,246 lots. LME tin inventories were down by 20 mt to 17,510 mt.
Weighed by the concern that recent crude oil price hike may disturb global economy recovery pace, LME base metal prices continued to experience correction on February 23rd. LME tin prices were largely on downward track after slight rally in early Asian trading hours, with support at USD 31,000/mt. Later prices began to fluctuate weakly after rebounding to USD 31,500/mt, and finally closed above flat level.
Exacerbated turbulence in Libya and significant oil price hike may negatively affect global economy recovery, casting a show on base metal outlook. Due to concern that oil prices may be pushed higher from supply cut in Libya, the US crude oil futures CLc1 surged to USD 100/bbl. Investors concerned that rally in energy prices may lead to high inflation, forcing China and other major base metal consuming countries to hike interest rate. The US equity market fell for the second consecutive days, as investors sold commodities with higher risk and brought government bonds, gold and Swiss Franc to hedge against risks. Market concerned that unrest in Libya may spread to North Africa and other courtiers on the Middle East.
Economic data for the US durable orders and new home sales will be released on Thursday. Base metal prices will continue to be weighed due to tension in the Middle East. SMM expects that LME tin prices will receive support at USD 31,000/mt on February 24.
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