In his weekend criterion column for The Australian, Tim Boreham reports that the long-awaited reduction in Indonesian tin production is a “blessed relief” for developers such as Stellar Resources.
Indonesian tin accounts for 25% of the market and there were suggestions that Indonesian producers have been mulling the decision to cut output for some months.
Last week, in a move that saw a 7% rise in the price of the “handy industrial metal”; Refined Bangka Tin, the world’s biggest tin producer, announced that it would cease production infinitely – good news for Australian tin exploration and development company Stellar Resources.
As part of his reporting Boreham goes on to reference Stellar’s 100% ownership of the Tasmanian Heemskirk project, and the assertion that it is “the highest grade undeveloped tin resource on the local bourse.”
Throughout the article Boreham’s view of the tin market was a positive one, a perspective Peter Blight, Stellar Resources Managing Director, is very much in agreement with; adding that it is “in much better shape than the price suggests.”
The full article, including comments from Stellar Resources, can be found at: http://www.theaustralian.com.au/business/opinion/tin-miners-worth-a-look-in-a-tight-market/story-e6frg9lo-1227319357831
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
Yesterday (Monday 20 April 2015) the price of tin surged by 6.7%, the most it had in three years, as signs of declining supplies spurred buying.
In an article for Bloomberg, Agnieszka de Sousa and Debarati Roy report that stockpiles tracked by the London Metal Exchange fell to the lowest since October, and Indonesia’s largest private smelter, Refined Bangka Tin, will halt production this week. The journalists argue that these factors helped the price of tin climb 6.7% to settle at $15,525 a metric ton, the biggest jump since January 2012.
The rising price of tin will be beneficial to developers and explorers such as Stellar Resources, especially as buyers may decide to stay away from unstable markets such as Indonesia and instead look for long-term stable supplies of tin in Australia.
To read more about this story featured on Bloomberg, click on the link below:
In his daily ‘In The Black’ column for the Herald Sun, John Beveridge argues that mining might not be the “flavour of the month” with investors, but within mining “lie some pockets of great interest”.
Beveridge reports that tin is attracting smart money, with the prospect of lower production out of Indonesia and greater use in solar panels, lithium ion batteries and to replace lead in solder. He writes: “Junior explorer Stellar Resources is highly leveraged to any improvement in the tin price with its high grade Heemskirk tin project in Tasmania showing potential to start production in a higher tin price environment by late 2017 or early 2018.”
To read the full article, including comment from Stellar Resources Managing Director Peter Blight, please visit: http://www.heraldsun.com.au/business/in-the-black/invion-aims-to-silence-dreaded-smokers-cough/story-fni0d787-1227275541411
At the recent Prospectors and Developers Association of Canada conference, corporate advisory firm Hallagarten & Co’s principal and mining strategist, Chris Eccleson, spoke of how tin’s muted performance in 2014 obscured the potential for price rises and robust margins in the coming years. Eccleson revealed that most commentators and market participants believed that current prices represented a trough, and concluded that “overall, we have things set up for a pretty bullish-looking scenario in tin for the next few years.”
Discussing the global tin market, Eccleson noted how Indonesia, Malaysia and China were currently closed markets, and Bolivia and Burma were attached with high political risks. He said that there had been some interest in the old Australian regions, which is positive news for developers and explorers such as Stellar Resources.
To read more about this story featured in Mining Weekly, click on the link below:
Journalists from across the globe have reported that a group of Indonesian tin smelters have put in place a three-month self-imposed quota to cap tin exports at 2,000 tonnes per month, hoping that the move will boost the metal’s price. Jabin Sufianto, chairman of the Association of Indonesian Tin Exporters, said that producers will review sales volumes every month depending on market demand.
Bloomberg’s Yoga Rusmana and Eko Listiyorini also report that Indonesian tin had not performed well on the London Metal Exchange over the last year, as suppliers faced increased competition from countries including Myanmar and Australia. However, with Indonesia having such a short-term tin strategy, reviewing their export quota month-by-month, buyers may look more at Australia for long-term stable supplier of tin – which could be beneficial to developers and explorers such as Stellar Resources.
To read more about this story featured in Mining Weekly, click on the link below:
Bloomberg’s Yoga Rusmana and Dwi Sadmoko report that tin exporters in Indonesia, the world’s biggest supplier, will meet later this week to discuss a temporary suspension of sales to stem declining prices. Rustam Effendi, the Governor of Bangka Belitung, is likely to be part of the discussions and is expected to propose an export halt on tin for at least two months.
However, for the shipment halt to be successful, all exporters must agree to it.
With Indonesia discussing plans to introduce further barriers to their tin market, buyers may look elsewhere for long-term stable suppliers of tin. This could be beneficial to Australian developers and explorers such as Stellar Resources.
To read the full article visit www.bloomberg.com
Bloomberg’s Dwi Sadmoko, Yoga Rusmana and Eko Listiyorini report on Indonesia’s plans to halt overseas tin shipments in an effort to raise prices. Indonesia is the world’s biggest tin exporter, accounting for 48 percent of global tin production. However, tin prices across the world keep falling as supplies from other countries, like Myanmar, continue to increase. There is an obvious need for cooperation from all smelters.
To read the full article, click on the link below:
Bloomberg recently carried out a poll among Indonesian smelters assessing future exports. The results indicate an expected median export of 16,000 tonnes for the fourth quarter of 2014. Lower prices and stricter controls are cited as drivers behind the prediction.
However, ITRI predicts Q4 exports between 20,000 and 25,000 tonnes, though does concede that “controls on illegal mining do appear to be getting tighter and the new export regulation will greatly reduce exports of tin in non-ingot form”.
ITRI’s predicted export rate would still place annual exports at around 80,000 tonnes, the lowest since 2007.
Over the past few months, Indonesian police have been cracking down on illegal tin mining – particularly in protected areas – and these tightened controls combined with dropping prices and new export regulations are likely to have contributed to lower sales.
The new regulations will come into effect from November 1 and are likely to impact the price of tin.
Bloomberg news has reported a global shortfall of ore supplies, while ore supplies from Myanmar to Chinese smelters have increased.
The deficit has been reported to drop to 7,000mt this year from the estimate of 10,800mt last year. However Myanmar ore output has grown from 20,000mt in 2013 to 25,000mt in 2014, reports ITRI China chief representative, Cui Lin.
The market is expected to remain in deficit in 2014 with Indonesia’s new export policy due to take effect in November. This policy may reduce production during the rest of the year. The low tin price may further curb high-cost production in Indonesia.
This year, China exported an average of 9,000mt of tin in metal, between January and August. During an interview conference in Suzhou, eastern China last week, Cui cited industrial data outlining expectations that exports would fall during the rest of the year, as Chinese prices moved above London Metal Exchange rates.
Indonesia is the largest shipper of tin, with China its biggest consumer.