Malaysian tin ended on Monday up 0.2 percent as traders scrambled to cover short positions taken during selling activity last week, dealers said, with sentiment firmed by a return of European buyers and a rise in London prices. Spot tin on the Kuala Lumpur Tin Market (KLTM) settled at $8,850 a tonne, up $15 from Friday. Turnover rose to 70 tonnes from 45 previously. "We were basically following the LME, but the return in European demand helped too," said a trader. There has been a lull in European buying on the KLTM since late November, since many traders have been on holiday.
Tin on the LME, or London Metal Exchange, rose $30 to $8,830 a tonne at Friday's close.
The London market often lends direction to KLTM prices, particularly when there are no local factors.
Dealers on the Malaysian market noted initial bids for 73 tonnes on Monday, versus offers for 58. Aside from Europe, demand also came from Japan and Malaysia.
The smaller rise in the KLTM price versus the LME narrowed the premium for shipping a tonne of Malaysian tin to Europe by $15 to $250 a tonne.
On Friday, the premium, calculated using freight, insurance and other financial costs stood at $265 a tonne.
Comments
Comments are closed.