SHANGHAI, Mar. 19 (SMM) – LME tin moved lower to USD 22,908/mt after opening Tuesday at USD 23,000/mt. The metal, however, closed at an intraday high of USD 23,185/mt, a gain of USD 234/mt. Trading volumes added 88 lots from a day earlier to 235 lots, while positions contracted 573 lots to 22,312 lots. Inventories dropped 5 mt to 9,100 mt.
It was reported that Indonesia’s major tin producing regions have experienced days of dry weather, which may undermine tin production and bode well for tin prices.
Recent economic data and Fed officials’ remarks have led markets to believe that the Fed will probably continue to trim its massive bond-buying program at a USD 10 billion pace per month. Caution will dominate the market before the Fed announces its policy decision soon. LME tin should encounter resistance at USD 23,650/mt on Wednesday. Spot tin prices in Shanghai are expected between RMB 139,000-141,500/mt, with demand remaining weak.