Tin rose $60 a tonne in Malaysian trade on Monday, aided by its resurgence on the London market, after last week's global selldown in base metals. The spot price on the Kuala Lumpur Tin Market rose to $8,150 a tonne from Friday's close of $8,090. The traded volume climbed to 60 tonnes from 54. "There's some good technical support coming in after the rout we saw last week," said a trader.
The local market rose $175 at the start of last week but finished with a gain of just $25. Tin on the London Metal Exchange ended up $125 to $8,150 a tonne on Friday. The London market often lends direction to prices in Kuala Lumpur when there are no local factors at play.
The $65 difference between the close in Kuala Lumpur and London narrowed accordingly the premium for shipping a tonne of Malaysian tin to Europe.
The premium, based on a formula that includes freight, insurance and other financial costs, stood at $225 on Monday compared with $290 on Friday.