Published July 05, 2013 [JAKARTA] Indonesia's overhaul of tin...

Published July 05, 2013



[JAKARTA] Indonesia's overhaul of tin trading rules that raises minimum purity levels is expected to slash shipments from the world's top refined tin exporter over the next few months, potentially pushing up prices for the metal used in electronic goods.

The Southeast Asian nation has, starting this month, banned exports of tin ingots with purity levels less than 99.9 per cent, cutting the content of lead. The aim is to boost the value of its exports - a goal the country is also pursuing with other metals such as nickel.

The ban is set to benefit big exporters such as state-owned PT Timah, Indonesia's top refined tin producer whose shares have tumbled 45 per cent since mid-January after a drop in global tin prices.

Timah and unlisted PT Koba Tin, owned by the Malaysia Smelting Corporation Bhd, already meet the new export norms, which exceed the 99.85 per cent minimum purity requirement set by the benchmark London Metal Exchange (LME) tin futures contract. But the rule affects hundreds of smaller producers who need longer to refine tin to higher specifications