Malaysia's tin price fell further on Monday, weighed down by weakness on the London Metal Exchange (LME) due to rising stocks.
Spot tin on the Kuala Lumpur Tin Market (KLTM) ended down $280, or three percent, at $9,100 a tonne. It fell 2.4 percent on Friday.
"There could be more downside after the sudden jump in LME stocks," said a trader, who pegged immediate support at $9,000. LME tin stocks rose another 170 tonnes to 4,130 on Monday.
The stock level had risen 1,215 tonnes, or 40 percent, last week from a 15-year low of 2,745 tonnes. The rising inventories pressured prices on the LME, with the metal ending $415 lower at $8,575 a tonne on Friday.
Sellers on the KLTM offered 73 tonnes at the outset of Monday's market, against bids for just 20 tonnes. Final volume stood at 73 tonnes, down from Friday's 79 tonnes, with buying again seen from Japanese and local interests.
The smaller drop on the KLTM versus the LME widened the premium for shipping a tonne of Malaysian tin to Europe, including freight and other costs, to $755 from $610 previously, dealers said.
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