SHANGHAI, Mar. 18 (SMM) -- LME tin futures contract for delivery in three months opened at USD 28,270/mt over night, and closed at USD 29,785/mt, up by USD 1,435/mt from a day earlier, with the highest price at USD 29,785/mt and the lowest price at USD 28,270/mt. Daily trading volumes were 516 lots and positions were 19,955 lots. LME nickel inventories were down by 35 mt to 18,090 mt.
LME base metals largely closed with gains on Thursday, due to a weaker US dollar and from traders' expectation that demand for industrial commodities will grow during the post earthquake and tsunami period. LME tin for delivery in three months advanced all the way to point 10-day moving average, and largely pared losses made on Tuesday.
Market focus is shifted to growing demand from rebuilding after Japan's disaster. In addition, dip-buying also lent support for base metals. Economic data announced by the US was optimistic, and the decline in jobless claim and the highest level of Philadelphia Fed business activity index since January 1984 boosted market sentiment. The People's Bank of China indicated that it will not hike interest rate and bank requirement reserve ratio soon, thus further inspiring market sentiment.
Although Japan's nuclear power plant is still the biggest concern for investors, market focus is gradually shifting. The continuous improvement of the US economy as well as growing demand for metal after Japan's earthquake will be positive factors attracting investors back into market. At present, LME tin prices meet resistant at USD 30,000/mt and receive support at USD 29,200/mt.
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