SHANGHAI, Mar. 28 (SMM) -- LME tin futures contract for delivery in three months opened at USD 31,450/mt over night, and closed at USD 31,800/mt overnight, up by USD 100/mt from a day earlier, with the highest price at USD 31,995/mt and the lowest price at USD 31,450/mt. Daily trading volumes were 192 lots and positions were 20,852 lots. LME tin inventories were up by 125 mt to 18,315 mt.
LME base metal prices closed mixed last Friday. Transactions of LME tin futures contract were quiet during the Asian trading hours, while LME tin futures contract prices met resistance at USD 32,000/mt and closed with slight gains after surging during the European trading hours. The speech of Federal Reserves' chairman suggested expectation of interest rate. In response, the US dollar index surged on Friday, weighing on base metal prices to certain extent.
Last Friday's better-than-expected GDP in 4Q announced by the US boosted market confidence, and pushed the US equity market higher. An annualized of the US GDP in 4Q was up by 3.1% on a quarterly basis, while market expectation was up by 3.0% and the previous reading was up by 2.8%.
In addition, investors also concerned over the European sovereign debt crisis and the Middle East unrest. Fitch downgraded Portugal's credit rating to "A-" from "A+", with a negative outlook. A reflection that the country faces growing risks in policy implementation and financing as the country refused to adopt austerity plan In addition, the western coalition forces' attack on Libya has entered into the seventh day.
Recent rebound of the US dollar weighed on base metals to certain extent, but positive demand outlook and improvement in global economy also attract investors back into base metal market. At present, base metal prices are on upward track, with resistance at USD 32,000/mta and support at USD 31,000/mt for LME tin prices on March 28.
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