Representatives of Indonesia’s tin smelters will meet again in Pangkalpinang, Bangka on Saturday to discuss next steps to follow up the export ban introduced at the start of the month. One option being proposed is to establish price-related export quotas.
Executives from companies including PT Timah and PT Koba Tin will consider setting a time limit for an export halt and a quota for shipments, Johan Murod, a director at PT Bangka Belitung Timah Sejahtera, told Bloomberg on Friday. The meeting will also explore developing a local tin market to derive a benchmark price, he said.
“As the biggest exporter, we have to create a blueprint as how to maintain prices and reduce dependence on the London Metal Exchange,” Murod said. “We also need to see how long we can keep the ban without hurting companies.” The gathering will also be attended by Governor Eko Maulana Ali, he said.
The export halt until prices return to $23,000 – 25,000/tonne was first agreed on 26 September, but PT Timah subsequently said that it would continue to supply customers under long-term contract arrangements. The producers plan to submit an action plan to support prices to the Ministry of Trade after the meeting, which could include a quota system. “If exports are opened but the price remains under $24,000, then we will agree on imposing a quota.” Rudi Irawan, chairman of the Indonesian Tin Industry Association told Reuters today. “The ideal quota is 60 percent of total monthly exports,” said Irawan. “(Private companies) are able to export 3,000-4,000 tonnes per month… ideally, it would be around 2,500 tonnes per month.”
