Malaysian tin fell 0.4 percent on Wednesday, extending its recent fall, as the market tracked a drop in the price of the metal in London. Spot tin on the Kuala Lumpur Tin Market (KLTM) dipped $40 to $8,940 a tonne. It has fallen 1.3 percent this week on the back of weakness on the London Metal Exchange (LME). Traders said the price could have been lower on Wednesday if not for a smaller offering as some sellers withdrew.
They noted initial bids for only nine tonnes against offers for 125 tonnes. Final volume was 80 tonnes, down from Tuesday's 140 tonnes. Buyers came from Japan and Malaysia. Tin on the LME, which often dictates price direction in Kuala Lumpur, fell $115 on Tuesday to $8,920 a tonne.
The smaller drop on the KLTM versus the LME widened the premium for shipping a tonne of Malaysian tin to Europe by $75 to $250 a tonne. On Tuesday, the premium, calculated using freight, insurance and other financial costs stood at $175 a tonne.