Preliminary data released by the Indonesian trade ministry today shows April tin exports at 5,071 tonnes, down by 2.8% compared to April last year, based on pre-shipment checks by surveying companies. The data appeared shortly after Bangka-Belitung Governor Rustam Effendi told Bloomberg that smelters would cut exports to 4,000 tpm from May. This is a stricter curb than the cap of 4,500 tpm previously agreed by PT Timah and members of the Association of Indonesian Tin Exporters (AETI).
PT Timah, the country’s top producer, will cut exports to a maximum of 1,500 tonnes and the balance will be split among private smelters the governor said. “This will be evaluated every month, whether there will be another cut or something,” Effendi told reporters after a meeting on Tuesday. Exporters will maintain the curb until the target price is reached, said Effendi, who estimates smelters’ operating costs at more than $18,000. AETI will discuss the new sales limit with members, Chairman Jabin Sufianto said in an interview after the meeting.
The April tonnage was a little higher than originally forecast, and higher than the 4,725 tonnes traded on the ICDX last month. All the latest month’s total consisted of tin ingot. Sales of solder and other tin products have been negligible since regulations were tightened last November. The rolling 12-month total of exports based on this series has been stable at 78,000 – 79,000 tonnes in the first four months of this year.
