SHANGHAI, Mar. 1 (SMM) -- LME tin prices opened at USD 24,001/mt and closed at USD 23,950/mt overnight, down USD 175/mt from a day earlier, with the highest price at USD 24,330/mt and the lowest price at USD 23,600/mt. Daily trading volumes were 420 lots, up 74 lots. Positions were 18,812 lots, down 109 lots. LME tin inventories were 10,470 mt, up 220 mt from a day earlier.
LME tin prices fell after initial surge last night. During Wednesday’s Asian trading hours and early European trading hours, LME tin prices advanced to USD 24,330/mt. During the evening trading hours, however, LME tin prices were weighed to hit a low of USD 23,600/mt. Although LME tin prices pared certain losses at the tail of the trading, LME tin prices finally closed at USD 23,950/mt, down USD 175/mt from a day earlier.
The Federal Reserve’s chairman Bernanke said in testimony to Congress, it is possible to keep stimulus policy, but inflationary pressure may grow amid short term energy price hike and unemployment rate may be higher than market expectation, lowering expectation that the Fed may implement QE3 in the short term. In addition, ECB’s second round LTRO is beyond market expectation to reach EUR 529.53 billion, weighing on exchange rate of euro. In response, the US dollar advanced overnight, dragging down base metal prices.
Market sentiment will be weighed as Bernanke hints that the Fed will not implement QE in the short term. Coupled with unsolved European debt issue and high oil price, market sentiment is pessimistic. Market players pin their hope on possible positive PMI from China to be released today. SMM expects that LME tin prices will continue to hover around USD 24,000/mt, and spot tin prices will move stable in the RMB 173,000-175,000/mt on Thursday.