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Malaysian tin rebounded on Wednesday, breaching the $7,000 a tonne barrier on the back of overnight gains on the London Metal Exchange (LME).
Spot tin on the Kuala Lumpur Tin Market (KLTM) ended up $60 at $7,055 a tonne, a new 19-year high.
It fell $5 on Tuesday. Traders said further gains were likely given the continuing strong demand and tight supply.
Volume fell to 60 tonnes from Tuesday's 71 tonnes, and was again taken up by Japanese and Malaysian buyers. Tin prices have surged since last year due to an acute drop in global stocks of the metal.
LME warehouse stocks stood at 12,650 tonnes on Wednesday, against a record high of 39,475 tonnes in August 2002. LME tin ended up $30 on Tuesday at $6,990 a tonne.

Copyright Reuters, 2004

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