Malaysian tin fell on Wednesday on profit-taking triggered by a lower close in the price of the metal in London. Spot tin on the Kuala Lumpur Tin Market (KLTM) ended $30, or 0.3 percent, down at $9,040 a tonne after a transaction of 137 tonnes. On Friday, it rose $55 on a volume of 155 tonnes. The KLTM was closed on Monday and Tuesday for the Eid-ul-Fitr holidays. Tin on the London Metal Exchange (LME), which often dictates price direction in Kuala Lumpur, fell $125 to $9,025 a tonne on Tuesday. Dealers on the local market noted initial bids for 75 tonnes, against offers for 107 tonnes. Buyers again came from Japan, Europe and Malaysia.
"There was not much interest after what happened on the LME," said a trader. "Also, there have been steady sellers since the price hit $9,000."
The smaller drop in the KLTM price versus the LME widened the premium for shipping a tonne of Malaysian tin to Europe by $95 to $245 a tonne.
On Friday, the premium, which is calculated using freight, insurance and other financial costs, stood at $150 a tonne.