SHANGHAI, Mar. 25 (SMM) -- LME tin futures contract for delivery in three months opened at USD 31,250/mt over night, and closed at USD 31,700/mt overnight, up by USD 375/mt from a day earlier, with the highest price at USD 32,000/mt and the lowest price at USD 31,100/mt. Daily trading volumes were 330 lots and positions were 20,557 lots. LME tin inventories were up by 140 mt to 18,190 mt.
Decline in the US durable goods orders dampened market sentiment, so LME tin prices declined after surging and largely moved stably during the Asian trading hours. However, the decline of the US dollar index also buoyed LME base metal prices to rise in early European trading hours. At present, LME tin prices moved above all moving averages, with positive trading sentiment reported.
The latest economic data from the US were mixed. The durable goods orders in February declined by 0.9% MoM, indicating bumps ahead for recovery in manufacture industry. However, the US employment data were improving, with last week's initial jobless claim down by 5,000. The EU summit held on Thursday was dominated by the Portugal crisis. Portuguese Prime Minister Jose Socrates who resigned last Wednesday strongly opposed to seek external financial assistance. Therefore, Fitch downgraded Portugal's credit rating of its long term government loan. In this context, market concern over the Portugal crisis further intensified.
At present, the market fundamental of global base metals has been constantly improving, which will serve as the major drive for the rebound of base metal prices in the long term. Investors' focus is shifting to bright demand prospect and positive factors. Although panic sentiment was triggered from previous price plummet, base metal prices are still on upward track and recent prices may further be pushed up in the near term. At present, LME tin prices meet resistant at USD 32,000/mt and receive support at USD 31,000/mt on March 25.
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