Malaysian tin price was flat on Tuesday in thin trade, with players refraining from taking fresh positions ahead of a long break. Spot tin on the Kuala Lumpur Tin Market ended at $7,870 a tonne on volume of 45 tonnes. The market will be closed from Wednesday for the Chinese and Muslim new year holidays, reopening on Monday. Traders said steady demand could push the local tin price back to the psychological level of $8,000 a tonne it last touched on January 31.
"We expect the market to rise when it reopens on Monday following the rebound on the LME," said a trader.
Tin on the LME, or London Metal Exchange, rose $70 on Monday to $7,900 a tonne. The London market often lends direction to the price in Kuala Lumpur, especially when then are no local factors in play.
The flat Malaysian price versus the rise in London narrowed the premium for shipping a tonne of tin to Europe by $70 to $190.
The premium, calculated using freight, insurance and other financial costs, stood at $260 a tonne on Monday.
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