Indonesian tin output to recover to 90,000 tonne in 2014
Post Date: 19 Dec 2013 Viewed: 339
Industry group ITRI, as teething problems associated with a new trading regulation in the world's top exporter are ironed out, tin output in Indonesia will rebound by as much as 6 percent to 90,000 tonnes next year.
Indonesian tin exports plunged from September, after the Southeast Asian nation made it mandatory for all exporters to trade on a domestic exchange before making shipments, in a bid to stop illegal mining and gain greater control over prices.
Although, the new rule was blamed by state-owned producer PT Timah for it declaring force majeure on August 30th, November exports jumped nearly 30% to more than 5,000 tonnes, indicating the worst may now be over.
It said that top Indonesian tin exporter Timah's force majeure will remain in place until at least the end of the year, but it expects tin sales to rise by more than a fifth in 2014.
Mr Peter Kettle manager of market studies at ITRI said that Indonesia's total tin output will fall by as much as 13% this year to 85,000 tonnes to 86,000 tonne. Output would recover next year to about 90,000 tonne.
Mr Kettle said that "For a couple of months there was a sort of stand-off, with people hoping for another change in the regulation."
He said that "But now people have accepted that it is a fact of life. You won't have the big disruption you had this year over a couple of months, and also prices will be a bit higher."
While Indonesia's monthly tin exports are showing signs of improvement, so too has the percentage of shipments of tin solder, which almost doubled in November from October to account for 1,544 tonne of the month's 5,193 tonne total.
Unlike tin ingots, tin solder will not be subject to a domestic trading rule until January 2015. He added that "It is something that has to be monitored. That is a loophole that people will have to look at."