The largest tin producer in Indonesia, which is the world’s top exporter, is cutting output by as much as 50 per cent. PT Timah will produce 1,500 metric tons to 2,000 tons of refined tin a month starting in April, below this year’s target of 2,000 tons to 3,000 tons.
In a report for Bloomberg, Yoga Rusmana and Dwi Sadmoko write that tin is “used in everything from cans to smartphones”, but PT Timah is seeking to stem the decline in price of the metal by restricting output while the Indonesian government tightens export and trading rules to limit shipments.
As producers cut back, the price of tin is expected to rise, which is good news for developers and explorers such as Stellar Resources. With further disruptions and restrictions to the Indonesian tin market, developers and explorers in stable countries such as Australia could receive more good news as buyers hunt for long-term stable supplies of tin.
To read the full article please visit: http://www.bloomberg.com/news/articles/2015-04-22/world-s-biggest-tin-exporter-cuts-output-after-price-rout
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.