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Malaysian tin extended gains on Thursday, helped by a steady London market and continued strong demand from Japan.
Spot tin on the Kuala Lumpur Tin Market (KLTM) ended up $20 at $6,490 a tonne on volume of 60 tonnes.
It also rose $20 on Wednesday, on turnover of 70 tonnes.
"The strong Japanese buying helped push the market higher, and we see further gains ahead due to strength of most base metals on the LME," said a trader.
He expects the local market to test the $6,550 level soon on the back of rising demand and flat supply.
The yen's strength against the dollar has encouraged buying interest from Japan. The dollar fell to a three-and-a-half-year low of around 105.20 yen earlier this week.
European buyers remained absent.
The premium for shipping a tonne of Malaysian tin to Europe, including freight and other costs, widened slightly to $235 from Wednesday's level of $215, dealers said.
Tin on the London Metal Exchange closed unchanged at $6,450 a tonne on Wednesday.

Copyright Reuters, 2004

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