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Since the Fed’s chairman Bernanke did not send clear signal on QE3 measures during his monetary policy report, market turned pessimistic toward economic prospects. The Fed believes the current economic data was not enough to prompt QE3 measures, disappointing market, but it also pointed out the possibility of implementing another round of QE policy in the future. Thus, metal markets rallied after falling initially. Market sentiment did not deteriorate without further negative news on from the euro zone. Meanwhile, the US Housing Starts for June hit the highest level since October 2008, with permits to build single-family homes reaching their highest point since April 2010, also driving metal prices to stabilize.
In China’s domestic markets, spot tin prices should be between RMB 147,000-148,500/mt on July 19.
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