SHANGHAI, Mar. 21 (SMM) – Markets were worried about sooner-than-expected interest rate hike by the US Federal Reserve and tightening credit in China. Growing tensions between the US and Russia over the crisis in Crimea have fuelled risk aversion. In this scenario, the US dollar index drifted higher, pulling tin prices down. LME tin opened at USD 23,100/mt on Thursday. The metal found day’s high of USD 23,180/mt and day’s low of USD 23,000/mt, closing the day down USD 100/mt at USD 23,050/mt. Trading volumes contracted 87 lots from a day earlier to 153 lots, while positions added 356 lots to 21,839 lots. Inventories grew 50 mt to 9,245 mt.
Concerns over credit squeeze in China, interest rate hike in the US and Ukraine crisis will leave LME tin hovering near USD 23,000/mt on Friday. In Shanghai physical tin market, wait-and-see sentiment will dominate, with prices expected between RMB 139,000-141,500/mt.