Malaysian tin fell for a third straight day on Monday, down almost one percent as the market remained under pressure from further cuts in the London price of the metal.
But dealers maintained their price outlook of $7,000 a tonne in the near-term, saying supply/demand factors were strong despite the market having fallen 2.8 percent since on Thursday.
"For this week, we expect the market to remain between $7,000 and $7,200 a tonne," said a tin trader on the northern Malaysian Island of Penang.
Spot tin on the Kuala Lumpur Tin Market (KLTM) fell $65 on Monday to $7,125 a tonne, on a volume of 80 tonnes. Tin on the London Metal Exchange also closed down for a third straight day on Friday, with the third-month contract slipping $55 to $7,145 a tonne.
The London market often lends direction to the price in Kuala Lumpur.
On Monday's KLTM, initial bids from Japanese and local buyers stood at 20 tonnes, against the 147 tonnes offered by sellers.
Final volume was 80 tonnes, with the Japanese taking 55 tonnes and Malaysians the balance 25.
The $10 difference between the drop on the KLTM and the LME narrowed accordingly the premium for shipping a tonne of Malaysian tin to Europe.
The shipping premium, which takes into account freight, insurance and other costs, fell to $200 a tonne from $210 on Friday.
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