Demand for KL tin picking up

The Kuala Lumpur Tin Market (KLTM) is expected to stage a better performance next week with the price of the metal likely to be traded at the level of US$21,500 per tonne, dealers said.

The KLTM would see demand mostly from the local and European traders as the price of the metal had eased by US$700 during the week just ended, a dealer said.

He also said that the tin price had fallen by almost US$2,000 from US$23,300 recorded early this month compared to only US$21,350 at the close today.

"Demand is picking up as traders are waiting for the tin price to fall. The market will see buying activities and I expect the market to improve next week," he said.

The movement of the global tin market trend setter, London Metal Exchange (LME), would also have a major impact on the performance of the KLTM, he added.

He said the market would see active participation from the local and European traders while the Japanese are expected to be sidelined as they are still monitoring the movement of the LME.

For the week just-ended, the KLTM was US$1,350 lower at US$21,350 per tonne compared to US$22,700 per tonne registered for the previous Friday.

During the week, the price of the metal was in the downtrend for most of the days, in tandem with the performance of the LME.

The KLTM opened the week at US$22,050 per tonne but its performance deteriorated to end the week at US$21,350 per tonne, largely influenced by the bearish performance of the LME.

Weekly turnover rose to 191 lots from 139 lots recorded for the previous week with Japanese, European and local traders dominating the market.

The price differential between the KLTM and the LME narrowed to a premium of US$355 per tonne from US$445 per tonne recorded on the previous Friday. -- Bernama