Malaysian tin dropped to a fresh 23-month lows on Monday as a further fall in the metal's London price prompted dealers to reduce stockpiles.
Spot tin on the Kuala Lumpur Tin Market fell $65, or 1.1 percent, to $6,060 per tonne, dipping past its previous low of $6,070, established on December 18, 2003.
The traded volume rose to 107 tonnes from 65 tonnes on Friday. Dealers said offers were more than four times that of bids, and the excess drove down the price.
"Buying from Japan came in only at the lower level," one dealer said. "The market will be around the 6,000-to 6,300-level this week."
Three-month tin on the London Metal Exchange, which usually guides Malaysian prices, fell $60 to $6,050 a tonne on Friday.
London tin has been down since last week as stocks in LME warehouses grew more than 50 percent to reach 13,000 tonnes.
On Monday's Kuala Lumpur market, Japanese buyers again dominated trade, accounting for 80 of the 107 tonnes traded. European dealers took 20 tonnes and Malaysians seven.
Spot tin was selling at a premium of $205 a tonne over LME prices on a cost, insurance, freight basis (CIF) for voyages to Rotterdam, dealers said.
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