Tin fell $20 a tonne in Malaysian trade on Friday after a drop in the London price saw less aggressive bids for the metal in Kuala Lumpur, dealers said. Spot tin on the Kuala Lumpur Tin Market settled at $8,080 a tonne, compared to Thursday's closing of $8,100. Turnover also declined to 59 tonnes from the previous day's 69 tonnes. Dealers said the market became bearish after tin futures on the London Metal Exchange fell $50 in two days. The LME often lends direction to the tin market in Kuala Lumpur. On Thursday's LME kerb trade, which starts after official floor dealing, the asking price for third-month tin stood at $8,050, down from Tuesday's $8,100.
The price fell $10 on Wednesday and another $40 on Thursday. "There was not much momentum in KL, given the weakness on the LME," said a tin trader on the northern Malaysian Island of Penning.
The $20 drop in the Kuala Lumpur price versus the $40 in London widened accordingly the premium for shipping a tonne of Malaysian tin to Europe.
The premium, based on a formula that includes freight, insurance and other financial costs, stood at $255 a tonne on Friday compared with Thursday's $235.
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