Malaysian tin price fell $345 a tonne on Friday as the market tracked a sharp fall on the London Metal Exchange (LME).
The spot price on the Kuala Lumpur Tin Market (KLTM) ended at $8,955 a tonne on volume of 81 tonnes, up from Thursday's 50 tonnes.
Traders attributed the fall to technical correction after a 14-percent jump this month. "The market had gone up too high, too fast.
It may consolidate around this level for a while, but prospects for further gains remain good due to tight supply," said one trader.
Dealers pegged support at $8,800.
Japanese buyers again dominated the KLTM, taking up most of the tin offered on Friday.
Tins on the LME closed sharply lower on Thursday, pressured by warehouse stock increases and profit taking ahead of the long holiday weekend.
It dropped to low of $8,100/8,200 a tonne before clawing back to end at $8,250, still down $400 from Wednesday's close.
The LME is closed on Friday and Monday.
LME stocks rose 665 tonnes to 6,975 tonnes on Thursday due to a large inflow in Spain.
The sharper fall in the LME price widened the premium for shipping Malaysian tin to Europe, including freight and other costs, to a record $930 a tonne from $865 on Thursday, said dealers.
Comments
Comments are closed.