Tin rose 1 percent in Malaysian trade on Thursday, rebounding from losses the previous day thanks to a higher closing price for the metal in London. The spot contract on the Kuala Lumpur Tin Market jumped $70 to $7,140 a tonne on volume of 105 tonnes.
It had closed $30 down on Wednesday, snapping a three-day winning streak during which it had gained 2.1 percent. Three-month tin on the London Metal Exchange (LME) ended up $100 at $7,200 a tonne on Wednesday, recovering part of Tuesday's loss of $125.
The Malaysian tin market often takes its cue from the LME. "There was good European demand here," one trader said. Initial bids on Thursday from Japanese, European and Malaysian buyers totalled 115 tonnes, against offers of 75 tonnes.
At the close, the Europeans took 75 tonnes, the Japanese 20 tonnes and Malaysians 10 tonnes. The $30 difference between the rise on the Malaysian market and the LME narrowed 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 $160 from Tuesday's rate of $190.
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