Malaysian tin closed flat on Monday, ignoring a drop in London prices, as sellers held back while awaiting further developments on the LME, dealers said.
Spot tin ended unchanged at $7,900 a tonne on reduced volume of 30 tonnes. Turnover was 40 tonnes on Friday. The London Metal Exchange (LME), which often dictates price direction in Kuala Lumpur, fell $150 to close at $7,800 a tonne on Friday.
"There was a reserve of sellers as they want to see how the LME will fare today," said a trader. Japanese buyers took 20 tonnes and Malaysians bought the remaining 10 tonnes.
Dealers said European buyers were sidelined because of the widening differential between the Malaysian and London prices.
The premium for shipping a tonne of Malaysian tin to Europe calculated on a cost, insurance and freight basis near doubled to $305 from $155 on Friday after the fall in the London price, dealers said.