SHANGHAI, Mar. 21 (SMM) -- LME tin futures contract for delivery in three months opened at USD 29,500/mt overnight, and closed at USD 29,700/mt, down by USD 85/mt from a day earlier, with the highest price at USD 29,800/mt and the lowest price at USD 29,700/mt. Daily trading volumes were 521 lots and positions were 19,711 lots. LME tin inventories were up by 100 mt to 18,190 mt.
Supported by stronger euro, LME base metals largely ended with gains last Friday, but concern over possible waning demand from China weighed on prices to certain extent. LME tin prices largely moved between USD 29,380-29,780/mt, receiving support at 60-day moving average. In addition, significant decline in the US dollar index continued to support base metal prices.
The People's Bank of China announced last Friday to raise bank requirement reserve ratio, the third of its kind in 2011 and the ninth of its kind since early 2010. LME copper prices took the lead to slip by this news.
The news that Libya was committed to conforming with United Nations resolutions and ceasing fire further boosted market confidence.
Earlier, G7 united together to intervene exchange market in order to curb soaring Japanese yen and to ease market unrest caused by Japan's nuclear crisis.
Market should focus on the US existing home sales data to be released on March 21. Based on price performance, panic sentiment caused by Japan's nuclear crisis has eased to certain extent, but uncertainties from China's tightening policy, the Middle East unrest and Japan's nuclear crisis still haunted market. The continuous improvement of the US economy as well as a growing demand for metal after Japan's earthquake will be positive factors to attract investors back into market. At present, LME tin prices meet resistant at USD 30,000/mt and receive support at USD 29,200/mt on March 21.
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