Malaysian tin extended its winning streak for a sixth straight day on Wednesday, rising another $110 to edge closer to the psychological barrier of $7,500 a tonne.
The spot price on the Kuala Lumpur Tin Market (KLTM) was quoted at $7,420 a tonne against Tuesday's price of $7,310, when it also jumped $110.
Turnover rose to 92 tonnes from 85 a day ago. It was the highest volume for the month since the 113 tonnes on March 1.
"It looks like we're well within the striking range of $7,500," a dealer said, adding that the market was strongly supported by foreign demand and surging tin prices in London.
Overnight, tin on the London Metal Exchange hit 14-year highs due to tight supplies, closing $160 up at $7,390 a tonne.
A global drop in tin stocks has seen the metal enjoying high prices on both the London and Malaysian markets since last year.
Tin stocks in LME warehouses have declined steeply in the last 18 months, standing at 11,655 tonnes on Tuesday, against the record high of 39,475 tonnes seen in August 2002.
Dealers expect demand to exceed supply by 16,000 tonnes in 2004.
After the overnight rise in the LME price, the premium for shipping a tonne of Malaysian tin to Europe, including freight costs, eased to $225 from $275 a day ago, dealers said.
In Wednesday's KLTM, Japanese, European and local buyers remained active, bidding for a total of 140 tonnes initially.
Sellers first offered 72 tonnes but later added 20 tonnes.
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