Preliminary data released by Indonesia’s Ministry of Trade today, shows a sharp fall in metal approved for export in October. Meanwhile state tin company PT Timah confirmed that it expects to produce only 45,000 tonnes this year, implying a 50% plus fall in October-December output compared to the previous quarter.
Reuters reports that Indonesia exported an estimated 4,439.39 tonnes in October compared to 13,508.86 tonnes in October 2007, down 67%. All refined tin was exported to Singapore. "Many small smelters have closed down because prices have fallen below production costs," said a trade ministry official. ITRI believes that the October figures include only a few containers from independent smelters, as the consortium of major private operations has ceased production and sales, partly in response to pressure from provincial governor Eko Maulana Ali.
Meanwhile President Director of PT Timah Wahid Usman told the Antara news agency on Thursday that the company would produce only 45,000 tonnes this year. He said the decision to cut tin production was part of a market strategy to raise the price of tin, which had dropped sharply due to the current global economic slump. "Tin production is prioritized for customers already bound under a contract with PT Timah until the price of the commodity is back to normal," he said. Timah produced 38,106 tonnes in the first three quarters of the year, of which 15,114 tonnes was produced in Q3. – ITRI
MLX Price at posting:
9.8¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)