The Indonesia Commodity and Derivatives Exchange (ICDX) continues to attract new tin producer members and will look at establishing tin futures trading after September, Exchange Commissioner Fenny Widjaja told Bloomberg. The exchange has 21 producer members, with six more smelters in the process of joining, the ICDX said at a conference it organised earlier this month.
ICDX plans to start a tin futures contract in the fourth quarter, said Widjaja. The exchange will wait until September, or after a year of tin auction physical trading, before deciding on contracts in other commodities such as nickel and copper, with plans dependent on whether the government backs the creation of local reference prices, he said.
Commenting on the market outlook Widjaja said that a tin price of “$24,000 is the ideal level for this year, that it will allow smelters to invest more in exploration, maintenance and post-mining activities. The government will get high royalty payments that can be used for infrastructure such as ports and power plants, which will not only support the tin industry but other sectors.”
