Tin fell $10 a tonne in Malaysian trade on Wednesday as sellers continued to offload the metal despite a turnaround in its London price. Spot tin on the Kuala Lumpur Tin Market settled at $8,340 a tonne, extending Tuesday's $160 drop. The local market has fallen a total of $205, or 2.4 percent, since Friday's close. Final turnover was 78 tonnes, versus Tuesday's 150 tonnes. Tin on the London Metal Exchange ended up $25 at $8,375 a tonne on Tuesday, recovering part of the $130 lost on Monday.
The London price dictates market direction in Kuala Lumpur when there are no other factors.
The difference of $35 between the Kuala Lumpur and London closing prices narrowed accordingly the premium for a tonne of Malaysian tin destined for European markets.
The premium, calculated using freight, insurance and other financial costs, stood at $185 a tonne on Wednesday compared with $220 on Tuesday.