SHANGHAI, Mar. 17 (SMM) -- LME tin futures contract for delivery in three months opened at USD 28,750/mt overnight, and closed at USD 28,350/mt, down by USD 230/mt from a day earlier, with the highest price at USD 29,150/mt and the lowest price at USD 28,325/mt. Daily trading volumes were 409 lots and positions were 19,801 lots. LME tin inventories were up by 175 mt to 18,125 mt.
LME base metals mostly ended with gains on Wednesday. Supported by dip-buying, equity market advanced to certain extent in early Wednesday, and LME tin prices fluctuated higher in response. However, the Japan's radiation leak still haunted financial market, and the slip of global equity market in the European trading hours pared early gains of LME tin prices.
The Middle East unrest added uncertainties and boosted oil price, which fueled expectation of inflation. Coupled with strong earth quake in Japan, decline risk for metal prices is increasing in the short term. In addition, economy recovery is also facing other obstacles, including the largest decline in 27 years in the US February's new home start, and Moody's cutting of Portugal sovereign credit rating by two grades. In addition, the stabilized trend of US dollar also weighs on base metals.
The US will announce industrial output data on March 17. Market still focuses the radiation leak in Japan and the Middle East tension. SMM expects that LME tin prices will meet resistance at USD 30,000/mt and receive support at USD 28,000/mt on March 17.
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