Malaysian tin fell 0.3 percent on Tuesday as sellers crowded the market to liquidate long positions. The Kuala Lumpur Tin Market's spot contract closed at $6,290 a tonne, down $20. But traded volume jumped to 63 tonnes, from Monday's 20 tonnes.

Three-month tin on the London Metal Exchange fell $5 to $6,250 a tonne on Monday. The London market often lends price direction to Malaysian tin.

Dealers said Japanese, European and Malaysian buyers bid for a total of 52 tonnes at the open in Kuala Lumpur. But sellers responded with 78 tonnes, suppressing the price.

The $15 difference between the falls in Kuala Lumpur and London narrowed the premium for shipping a tonne of Malaysian tin to Europe to $245 a tonne from Monday's rate of $260.

Copyright Reuters, 2005