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Malaysian tin closed flat for a second straight day on Wednesday, with dealers saying the market seemed well supported at $8,000 a tonne despite few positive leads. Tin on the London Metal Exchange was down $25 as the market resumed trade on Tuesday after the Labour Day holiday. LME tin often leads prices in Kuala Lumpur. But the spot price on the Kuala Lumpur Tin Market remained resilient at $8,020 a tonne unchanged since on Friday.
Daily turnover shot up 65 percent to 124 tonnes despite on Thursday's impending holiday in main buying destination Japan, and China celebrating Labour Day through the week.
"The price is very steady at the moment and seems well supported at the $8,000 level," said a trader in Malaysian tin. Japanese, European and Malaysian buyers put up total bids for 124 tonnes to match sellers' offers, dealers said.
They said the premium for shipping a tonne of Malaysian tin to Europe rose $25, after accounting for the overnight drop in the London price and the steady close in Kuala Lumpur.
The premium, based on a formula that includes freight, insurance and other financial costs, stood at $220 on Wednesday compared with Tuesday's $195.

Copyright Reuters, 2005

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