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Malaysian tin rebounded to end sharply higher on Monday, spurred by strong Japanese buying following a long holiday break, dealers said.

The Kuala Lumpur Tin Market (KLTM) spot contract closed up $140 at $6,370 a tonne. Volume rose to 51 tonnes from 27 tonnes on Wednesday.

The market was closed on Thursday and Friday for Eid-ul-Fitr holidays.

Last week's gains on the London Metal Exchange also helped the Malaysian market.

Three-month tin on the LME, which often guides Malaysian prices, rose $125 to $6,375 a tonne on Friday. Dealers noted initial bids for 175 tonnes against offers for 21 tonnes.

The premium for shipping a tonne of Malaysian tin to Europe widened to $190 from Wednesday's rate of $175. The premium takes into account freight, insurance and other costs.

Copyright Reuters, 2005


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