Trading in physical tin on the Indonesia Commodity & Derivatives Exchange (ICDX) is now in its second month, with generally low volumes and prices slightly higher than those recorded on the London Metal Exchange.

Turnover in the INATIN contract, launched at the start of last month, amounted to 240 tonnes (48 lots of five tonnes) in February. The average price settled in the online auction system was US$24,616/tonne, compared to the February average official cash settlement price on the LME of US$24,343/tonne.

The monthly volume on the Indonesian market was boosted by trades of 100 tonnes on 27 February. More typically only one or two lots have been traded daily. The slow start reflects limited participation by local independent smelters and overseas buyers, although the contract has the backing of Indonesia’s largest producer, PT Timah.