SHANGHAI, Mar. 15 (SMM) -- LME tin futures contract for delivery in three months opened at USD 29,850/mt over night, and closed at USD 29,725/mt, up by USD 25/mt from a day earlier, with the highest price at USD 29,900/mt and the lowest price at USD 29,375/mt. Daily trading volumes were 263 lots and positions were 20,815 lots. LME nickel inventories were down by 90 mt to 17,960 mt.
LME base metal prices closed mixed on Monday, with LME tin futures closed slightly higher. LME tin prices slipped after a high open, and continued to move weakly, with price band advancing to the USD 29,700-29,850/mt range in the evening trading hours.
Wait-and-see sentiment was triggered due to concerns that earth quake in Japan may cast show on global economy, and uncertainties continued to weigh on market. Although sell-offs of base metals were triggered due to earth quake in Japan and the North Africa and the Middle East tension, base metal prices were boosted to cretin extent due to expectation of reconstruction after the disaster.
China's new low during February was lower than expected, and M2 was up YoY due to government’s policy to tighten money supply and counter inflation. This is expected to dampen demand for base metals.
Short-term movement will be guided by performance of global equity market, economic index as well as monetary policy and economic status from China. Market continues to focus on earth quake in Japan, China's inflation, the Federal Reserves' meeting, the Middle East tension and the European debt crisis. Prices were slightly stabilized, with support at USD 29,000/mt and resistance at USD 30,000/mt.
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