SHANGHAI, Mar. 27 (SMM) -- LME tin prices for delivery in three months opened at USD 22,225/mt and closed at USD 22,640/mt overnight, up USD 415/mt from a day earlier, with the highest price at USD 22,640/mt and the lowest price at USD 22,141/mt. Daily trading volumes were 177 lots, down 248 lots. Positions were 19,042 lots, up 189 lots. LME tin inventories were 12,825 mt, up 120 mt from a day earlier.
LME tin prices extended weak momentum and hit a low at USD 22,141/mt during Monday’s Asian trading hours, but rapidly surged from low to close at USD 22,640/mt on expectation of QE3 following Federal Reserve Chairman Ben Bernanke’s remark, up USD 415/mt from a day earlier.
According to economic data announced from the US on March 26th, the home data for February and Dallas Fed Manufacturing Index for March were both lower than market expectation, though recent economic data from the US were largely improved to great extent. The weak data in the home sector and manufacture sector shows that the US economic recovery outlook is still rugged. However, during the evening, expectation over QE3 was further stoked following Fed Chairman Ben Bernake’s remark. Meanwhile, optimism of European debt crisis and European economic recovery brought by remarks of European officials sent three major equity markets in the US to rise considerably. In this context, LME base metal prices largely closed with gains overnight.
It is expected that LME tin prices will extend upward momentum as no solid economic data will be released on Tuesday’s Asian trading hours, wit support at USD 22,000/mt and resistance at USD 23,000/mt. In China’s spot tin market, spot tin prices will be limitedly boosted by overnight LME tin price increase due to sluggish downstream demand, and will largely move in the RMB 169,500-171,000/mt range on Tuesday.