Following a meeting on Friday called by the Governor of Bangka-Belitung province, Rustam Effendi, Indonesian tin exporters are continuing to discuss whether or how to manage their sales in order to support tin prices.
Bloomberg reported that the 25 companies involved, including state tin company PT Timah, had formed a working group to devise the “best step” to increase prices. The team has four days to formulate measures, Effendi told reporters after the meeting in Pangkalpinang, adding that no decision had been taken yet on whether to curb shipments or stop exports completely. Refined Bangka Tin, country’s largest private tin smelter, will follow the decision taken by Bangka’s Governor, whether it is a moratorium or export curb, CEO Petrus Tjandra told Bloomberg.
ITRI View: There has been a steady flow of plans to restrict tin sales reported since mid-February, with PT Timah announcing that it was suspending spot sales on 13 February and the nineteen private smelter members of the Association of Indonesian Tin Exporters (AETI) opting on 17 February for monthly limits on members’ sales of 2,000 – 4,000 tpm, depending on market conditions. Meanwhile market prices have continued to sag. None of the plans involve production cuts, so we see no lasting market impact of whatever scheme is agreed.
