Tin closed up 0.7 percent in Malaysia on Monday as Japanese and European buyers returned to the market in a bigger way after noting a rise in the London price of the metal.
The spot contract on the Kuala Lumpur Tin Market (KLTM) rose $50 to $6,590 a tonne on a volume of 95 tonnes. Tin futures on the London Metal Exchange, which often lend direction to the KLTM, broke a three-day slide on Friday, with the three-months contract climbing $70 to $6,600 a tonne.
"The market here increased in line with the LME as there was good demand from the Japanese and Europeans," said a KLTM trader. "Sellers also took advantage to sell backlogs." Bids at Monday's KLTM totalled 165 tonnes, against the 93 tonnes offered by sellers.
The market closed on a turnover of 95 tonnes, with the Japanese buying 50 tonnes, the Europeans 40 and the Malaysians 5.
The $20 difference in the rise between the KLTM and LME narrowed accordingly the premium for shipping a tonne of Malaysian tin to Europe.
The premium, which takes into account freight, insurance and other costs, fell to $195 a tonne from Friday's $215.
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