Malaysian tin rose nearly 3.5 percent on Wednesday, buoyed by a surge in London prices. Spot tin on the Kuala Lumpur Tin Market (KLTM) ended up $280 at $8,500 per tonne, after having hit a seven-week low the previous day. The price of tin on the London Metal Exchange rose $500 to $8,600 per tonne on Tuesday.
"The rise here is less because yesterday our premium was $330, which is considered high," said one dealer. "Today's rise is due to short-covering after the recent sharp declines." In Kuala Lumpur, volume rose to 61 tonnes from Tuesday's 31 tonnes.
At the open, buyers sought 105 tonnes, against the 59 tonnes offered by sellers. By session's end, Japanese dealers bought 30 tonnes, European buyers took 20 tonnes, and Malaysians took 11 tones.
The premium for shipping a tonne of Malaysian tin to Europe calculated on a cost, insurance and freight basis fell to $110 from $330 on Tuesday, dealers said.