Spot tin in Kuala Lumpur closed up $30 at $8,990 a tonne with 59 tonnes traded, up from Wednesday's 40 tonnes.
The price had fallen 0.4 percent, or $40, on Wednesday. "There was a little bit of covering interest but we don't think it will go up much higher. Many are waiting to sell at above the $9,000 level," said a trader. Demand for Malaysian tin has softened over the past month due to a summer lull and a lack of interest from top buyer Japan, which has met its immediate buying requirements. The Japanese use tin extensively for soldering purposes in their electronics industries.
A $25 drop in the price of tin on the London Metal Exchange (LME) on Wednesday did not depress the Malaysian market, which was again dominated by local interests. The price gain on the KLTM versus the decline on the LME widened the premium for shipping a tonne of Malaysian tin to Europe, after including freight, insurance and other financial costs, to $265 from $210 on Wednesday.