SHANGHAI, Mar. 26 (SMM) -- LME tin prices for delivery in three months opened at USD 22,424/mt and closed at USD 22,225/mt last Friday night, up USD 25/mt from a day earlier, with the highest price at USD 22,600/mt and the lowest price at USD 22,100/mt. Daily trading volumes were 425 lots, up 92 lots. Positions were 18,853 lots, up 247 lots. LME tin inventories were 12,690 mt, up 190 mt from a day earlier.
LME tin prices advanced slightly to USD 22,600/mt during last Friday’s Asian trading hours, but resumed downward momentum to hit a low at USD 22,100/mt during the European trading hours. Later, LME tin prices were temporarily boosted by China’s cut in bank's requirement reserve ratio. At the tail of the trading, LME tin prices still fell and closed at USD 22,225/mt, up USD 25/mt from a day earlier.
The US February new home sales data were lower than market expectation. However, recent economic data from the US were largely positive, reflecting a moderate expansion of the US economy. In this context, the US equity markets did not slip further but closed with slight gains slightly instead. Market players expect that the Federal Reserve will not change monetary policy in the short term as officials from the Fed said that it is appropriate to adopt a cautiously positive attitude towards the US economic outlook. In addition, the euro continued to rally as the European debt crisis eased to certain extent. Coupled with signs of supply shortfall, LME base metal prices largely closed with gains last Friday night.
Market lacks guidance from solid economic news and data in the short term, it is expected that LME tin prices shall continue to fluctuate weakly, with resistance at USD 23,000/mt and support at USD 22,000/mt on Monday. In the Shanghai tin spot market, SMM expects that spot tin prices will largely remain stable in the RMB 169,500-171,000/mt range on Monday as LME tin prices don't fall further and macroeconomic condition improves.