Malaysian tin rose another half a percent on Monday, as the market tracked further gains on the London Metal Exchange (LME). Spot tin on the Kuala Lumpur Tin Market ended up $40 at $8,440 a tonne on volume of 85 tonnes. It rose $44 on Friday with 75 tonnes traded. "We are on track to breach the $8,500 level this week as foreign demand, particularly from Japan, is picking up," said a trader.
Malaysian tin last traded above $8,500 a tonne on December 22. Tin on the London Metal Exchange (LME), which often dictates the trend in Kuala Lumpur, rose $60 to close at $8,500 a tonne on Friday.
Dealers noted initial bids totalling 140 tonnes from Japanese, European and Malaysian buyers on Monday, against offers for 92 tonnes.
The smaller rise in the Malaysian price versus the LME narrowed the premium for shipping a tonne of Malaysian tin to Europe by $20 to $160. The premium, calculated using freight, insurance and other financial costs stood at $180 on Friday.