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Tin fell half a percent in Malaysian trade on Wednesday, pressured by fresh losses in the London price. The Kuala Lumpur Tin Market (KLTM) spot contract closed at $6,250 a tonne, down $40.

The volume transacted rose to 102 tonnes, from Tuesday's 63 tonnes. Three-month tin on the London Metal Exchange (LME), which often provides price direction to the KLTM, fell $50 to $6,200 a tonne on Tuesday.

Dealers said Japanese and Malaysian buyers bid for a total of 25 tonnes at the KLTM's open.

Sellers offered 102 tonnes, setting the mark for the day's turnover. "The good buying support checked a further decline in the price," said a trader.

The $10 difference between the falls in Kuala Lumpur and London widened the premium for shipping a tonne of Malaysian tin to Europe. The premium, which takes into account freight, insurance and other costs, rose to $255 a tonne from Tuesday's rate of $245.

Copyright Reuters, 2005


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