SHANGHAI, Mar. 2 (SMM) -- LME tin prices opened at USD 32,200/mt overnight, and closed at USD 32,450/mt, down by USD 99/mt from a day earlier, with the highest price at USD 32,450/mt and the lowest price at USD 31,880/mt. Daily trading volumes were 449 lots and positions were 19,946 lots.LME nickel inventories were down by 155 mt to 17,520 mt.
LME base metal prices largely ended with losses on Tuesday due to re-kindled concern that crude oil price surge may negatively affect global economy and also from stronger US dollar. LME tin prices fluctuated widely overnight, largely moving above USD 32,000/mt.
Market attention shifted to the Middle East again as oil price surge weighed on base metal prices again from protest movement in Iran and exacerbating violence in Libya.
Boosted by strong economic data from the US manufacture sector, the US dollar rebounded versus the euro. Meanwhile, the Federal Reserve chairman Ben Bernake's positive statement on economy also sent the US dollar higher.
Meanwhile, the mixed economic data released on Tuesday also weighed on base metal prices. The US Institute of Supply Management (ISM) released on Tuesday that PMI for February was 61.4, the highest since May 2004. The previous estimation was 61.0, and the reading was 60.8 in January. The US Department of Commerce announced that the US construction spending for January was down by 0.7% to an annualized rate of USD 791.82 billion. The previous estimation was down by 0.4%, and the revised date for December was down by 1.6%. China Federation of Logistics and Purchasing announced that official PMI for February fell from 52.9 in January to 52.2 in February, higher than estimation of 52.0. However, purchase price index was still high, with input price index for February at 70.1. HSBC PMI for February fell to a 7-month low, due to slower growth in manufacture sector, relatively slow growth of new orders and rapid growth of input price index to a 3-month high.
Affected by recent political unrest, recent base metal prices may be more volatile. Support by strong fundamentals, LME tin prices may hover at high level,with short-term resistance at USD 32,500/mt, and support at USD 31,000/mt.
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