According to ITRI a proposed new Bulletin Board system will enable tin sellers to deal with individual customers directly outside of the current auction system. This initiative is being spearheaded by the Indonesia Commodity and Derivatives Exchange (ICDX) to boost participation by international tin buyers.
The Small-to-Medium (S/M) End-User membership scheme is aimed at users of tin who purchase less than 250 tonnes per annum, provide details of their planned purchases and have been subjected to onsite inspections. Qualifying buyers will be exempt from the exchange’s regular $30,000 joining fee and their membership charges will also be reduced.
The S/M users can organise one-on-one deals via the Bulletin Boards and will have a special system for purchasing tin from individual suppliers subject to a yearly maximum volume.
Depending on the subsequent feedback of S/M End-Users, these new trade initiatives have the potential to be adopted by other exchange companies and change the way in which tin is bought and sold globally.