Twenty five tin smelters in Indonesia agreed to extend an export ban until the year-end to boost prices, Ismiyardi, head of the provincial parliament in Bangka Belitung, told Bloomberg. PT Timah, and PT Koba Tin back the extension, said Ismiyardi after an industry meeting. Timah is allowed to ship contractual sales, said Bangka Governor Eko Maulana Ali. The latest meeting resulted in a more comprehensive agreement than one attended by 15 private smelters on October 28. 32 companies in Indonesia hold export licences, but some of these have been inactive recently.
The smelters will meet the trade minister next week to discuss the ban and plans to establish a local market, the governor told Bloomberg. While Timah is permitted to ship contractual sales, the company needs to maintain a halt on spot sales, he said. Koba Tin backs the extension and will discuss contractual sales with the Bangka governor and the government, said Khairul M. Yusuf, its finance director.
The smelters want export quotas to start from January, said Rudy Irawan, who was appointed executive chairman of a new group called the Indonesia Tin Association at the meeting yesterday. “We will give a recommendation to the governor and the trade ministry for quotas for each company,” he said in an interview.
