SHANGHAI, Feb. 28 (SMM) -- LME tin prices opened at USD 31,255/mt on Friday night, and closed at USD 32,115/mt, up by USD 705/mt from a day earlier, with the highest price at USD 32,115/mt and the lowest price at USD 31,250/mt. Daily trading volumes were 387 lots and positions were 20,278 lots. LME tin inventories were up by 100 mt to 17,630 mt.
Supported by stabilized crude oil price, LME base metal rallied across the board last Friday.LME tin prices fluctuated higher and closed above all moving averages last Friday, paring losses in the past few days.
After hitting a 2.5-year high last Thursday, crude oil prices stabilized below USD 100/bbl. Given that oil supply from Saudi Arabia, a large oil exporter, increased, market concern over possible oil supply cut triggered by Libyan turbulence eased to certain extent.
As market was focused on Libya, a series of disappointing data released last Friday were ignored. According to data announced last Friday by the US Department of Commerce, the revised annual rate of US GDP in quarter four was up by 2.8% from a quarter earlier, lower than previous estimation of 3.3% and the previous reading of 3.2%. According to data from the Office for National Statistics of the UK, revised GDP in quarter four slipped by 0.6% from a quarter earlier, and the previous estimation was down by 0.5%.
Indonesia's state owned PT Timah, the largest comprehensive tin producer in the world announced last Friday that output in quarter one may be lower than expectation due to rainy weather factor.
The news of possible step-down of Libyan leader was gradually absorbed by investors, which may support base metal market and the US equity market. However, political unrest hasn't stabilized in Libya. If any change happens, base metal prices may be affected. Possibility for LME tin prices to fluctuate wider is high, with prices currently receiving support at USD 31,000/mt.
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