Tin slipped to new 19-month lows in Malaysian trade on Monday, falling more sharply than it did at last week's close in London in an attempt to trim a yawning freight premium to Europe, dealers.
The spot contract on the Kuala Lumpur Tin Market (KLTM) ended down $200, or three percent, at $6,470 a tonne, the lowest since February 4, 2004. The market has fallen 6.8 percent since September 12.
Three-month tin on the London Metal Exchange fell $140, or 2.14 percent, to $6,400 a tonne on Friday. "I guess we took a sharper cut to make adjustments to the premium," said a KLTM trader. Premium for shipping a tonne of Malaysian tin to Europe narrowed to $285 from Friday's $345, dealers said.
The Malaysian market saw total bids for only 20 tonnes from Japanese and local investors at Monday's open, compared with the 120 tonnes offered by sellers.
The volume traded rose to 82 tonnes from Friday's 50 tonnes.