Tin that is ready for export from Indonesia's Bangkok and Belting islands is surging as smelters ramp up production, according to government and industry sources. According to trade ministry data, ready-for-export tin amounted to 17,811 tonnes, which would be sharply higher than the 2,275 tonnes of the refined metal actually exported in July.
The data is preliminary and it is not clear how much of the tin would actually be exported in August. The amount of tin, however, exceeds current London Metal Exchange warehouse stocks of around 14,095 tonnes. Ague Tjahjono, director of mining and industry exports at Indonesia's trade ministry, said the figure was not definitive.
"The data is from surveyors' reports. The actual export figure may be different due to various reasons," Tjahjono told Reuters, adding that could not give details on the reasons for the jump. Tin that is ready for export is metal at warehouses available to be shipped to customers. "I am sure the number is higher than 17,000 tonnes.
It could be in the range of 30,000 tonnes because smelters have become very active," said a regional dealer, who closely watches developments in Bangkok. "The refined tin for exports all comes from new production. In fact, more than 100 containers were shipped out of Bangkok in late August. The tin came from private smelters, not including Timah and Koa," he said.
But not everyone is convinced the tin will make it to market. "I am a little suspicious about these numbers. There are lot of games going on in tin and this could be an attempt to spook prices lower," an UK-based tin trader said. "There may have been a build up of tin awaiting paperwork as there are various bits and pieces that are required before export.
If these sort of tonnage's are coming out of Indonesia, a lot will end up in warehouses in Singapore." Six smelters export the metal, used in electrical solders and as a corrosion-resistant coating for other metals. The smelters are state-owned PT Timah TDK, PT Kobe Tin, PT Bangkok Pouter Kara, CV DS Jays Abide, PT Billion Maker Lester and CV Donna Kembara.
The six smelters are among 14 registered as tin exporters. Timah said in mid-August that it would halt sales of tin until the London Metal Exchange price rises back above $15,000 a tonne, which it only managed toward the end of the month.
A government crackdown on illegal mining in the Bangkok and Belting islands last October forced dozens of independent small smelters to close, sending tin prices on the LME to contract highs.
Tin exports for the whole of 2006 stood at 118,555 tonnes. Following the crackdown, the government issued stringent rules for tin exports, including a minimum purity of 99.85 percent for refined tin and the need to provide proof of royalty payments.
Tin prices on the London Metal Exchange were quoted at $15,100 a tonne on Tuesday, up around 30 percent since the start of the year but off the record high of $17,050 hit in August.
Comments
Comments are closed.