SHANGHAI, Jul. 18 (SMM) – Since Bernanke’s remark depressed market, LME tin prices opened at USD 18,898/mt overnight and fluctuated down to hit a low of USD 18,680/mt, but gained buying support with prices finally closing at an intraday high of USD 18,940/mt, up USD 190/mt from the previous trading day. Daily trading volumes rose 144 lots to 289 lots, and positions were down 987 lots to 19,468 lots. LME tin inventories were 11,955 mt, down 140 mt.
The Fed’s chairman Bernanke Tuesday said at his testimony the Fed planned to provide further monetary stimulus to bolster the slower economy. He also said in front of the Senate finance committee that the uncertainties of the European debt issues and US financial policy had resulted in tighter financing conditions and had impeded economic recovery. The comments by Bernanke which suggested a possibility of QE3 but gave no specific time for the implementation are within expectations. Since the Fed was not optimistic to economic prospects, investor expectation on another round of easing monetary policy raised again.
In China’s domestic markets, spot tin prices should be between RMB 147,000-148,500/mt on Wednesday.