Malaysian tin prices dropped slightly on Wednesday, as buyers took stock of the impact from a correction following a spurt this week in the metal's London price, dealers said.
Spot tin on the Kuala Lumpur Tin Market (KLTM) closed down 0.2 percent, or $20, at $8,280 per tonne, after having risen 2.2 percent on Tuesday to its highest level since hitting $8,340 on March 23 last year.
Three-month tin on the London Metal Exchange (LME), which often lends direction to the KLTM, fell $75 to $8,325 a tonne on Tuesday, after having jumped $225 on Monday.
"Some buyers were sidelined as they want to see how the LME will fare today," one dealer said, noting that dealers from Japan, Europe and Malaysia had sought only 30 tonnes of the metal at the market's open, while sellers offered 51 tonnes.
Final volume was 48 tonnes, compared to 60 tonnes on Tuesday. Japanese and European buyers took 20 tonnes each, while Malaysian buyers took 8 tonnes.
The premium for shipping a tonne of Malaysian tin to Europe calculated on a cost, insurance and freight basis rose to $160 from Tuesday's $105, taking into account the difference between the falls in London and Kuala Lumpur, dealers said.
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