Malaysia's tin price hit a three-month high on Wednesday, edging closer to the $7,000 a tonne barrier, as strong European demand pushed the market up for a fifth successive day.
Spot tin on the Kuala Lumpur Tin Market rose 0.9 percent, or $60, to $6,900 a tonne after transacting a volume of 99 tonnes nine tonnes more than on Tuesday. Its previous high was on September 13 when it hit $6,925.
Tin has risen 4.7 percent, or $310, in Malaysian trade since December 7, fuelled mainly by resurgence in European demand and supportive prices on the London Metal Exchange (LME). "The LME prices are going from strength to strength and that's driving the European buying both here and there," said a tin trader in Malaysia.
Lime's three-month tin, the main guide to Kuala Lumpur prices, climbed $30 to $6,930 a tonne at Tuesday's close.
Dealers in Kuala Lumpur noted initial buying interest for 150 tonnes, versus offers of 99 tonnes, on Wednesday's market.
European traders eventually took 80 tonnes, Japanese buyers 10 and Malaysian parties nine. Spot tin fetched a premium of $160 a tonne over LME prices on a cost insurance and freight (CIF) basis for voyages to Rotterdam, dealers said.