SHANGHAI, Jun. 21 (SMM) – The Fed extended Operation Twist to the end of this year and decided to keep the low interest rates of 0-0.25% through at least late 2014, disappointing market players. LME tin prices opened at USD 19,600/mt in electronic trading overnight and closed at USD 19,151/mt, a sharp decline of USD 449/mt from the previous trading day. The highest price of the day was USD 19,699/mt and the lowest was USD 19,150/mt. Daily trading volumes were up 166 lots to 304 lots, while positions remained at 18,848 lots. LME tin inventories fell by 60 mt to 12,115 mt.
The Fed decided to maintain the interest rate at 0-0.25% and to prolong the Operation Twist through the end of 2012, selling USD 267 billion of shorter-term securities and buying the same amount of longer-term debt. Besides, the Fed introduced no greater changes in monetary polices, buoying the US dollar index. Thus, base metals should continue to be under downward pressures.
In China’s domestic market, tin prices are expected to be RMB 149,500-151,000/mt on Thursday.