Malaysian tin rises despite LME decline

30 Jun, 2006

Malaysian tin rose 0.9 percent on Thursday, despite losses on the London Metal Exchange, as good buying supported the market. Spot tin on the Kuala Lumpur Tin Exchange ended up $70 at $7,920, after having lost $20 in the previous session. Volume was marginally up at 46 tonnes compared with Wednesday's 45 tonnes.
Three-month tin on the London Metal Exchange (LME), which usually dictates the price direction in Kuala Lumpur, closed down $10 at $7,940 per tonne on Wednesday.
"Prices rose due to good buying support," one dealer said. "But some buyers withdrew when the market went up." Europeans were the main buyers on Thursday, taking 40 tonnes, with Malaysian traders buying six tonnes, although Japanese dealers withdrew from the market when the prices rose.
Buyers sought 70 tonnes at the market's open, against offers of 36 tonnes. The premium for shipping a tonne of Malaysian tin to Europe calculated on a cost, insurance and freight basis rose to $185 a tonne from $105 on Wednesday.

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