SHANGHAI, Mar. 8 -- LME tin futures contract for delivery in three months opened at USD 31,505/mt overnight, and closed at USD 30,700/mt, down by USD 875/mt from a day earlier, with the highest price at USD 31,900/mt and the lowest price at USD 30,700/mt. Daily trading volumes were 450 lots and positions were 20,691 lots. LME tin inventories were up by 55 mt to 17,755 mt.
LME tin prices fluctuated narrowly during the Asian trading hours, but slipped along with LME copper prices in the evening trading hours when LME copper prices recorded a 4% intraday decline, the largest single day slip since mid-November, due to geopolitical tension. In this context, LME tin prices slipped all the way, failing to stand above USD 31,000/mt and closing below 30-day moving average.
The Libya tension led to surge of international oil price, and long positions of global crude oil contract increased significantly. Crude oil futures contract price hit a 2-year high, fueling expectation of inflation. Credit rating of Greece was further downgraded, as Greece is facing great risk of fiscal consolidation plan and possibility of debt restructuring.
Chinese government strives to control inflation rate in 2011 at around 4%, igniting concern that the largest metal consumer will further tighten its monetary policy. In this context, concerns over waning demand made investors sell off base metals.
LME tin prices may meet great resistance to rise further, and shall test supporting level at USD 30,500/mt on March 8.
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