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Indonesia tin export volumes continue to fall

Indonesian tin exports shipments continue to decline. In November this year, the number of exported metal fell by 93% relative to the October figures. It was about 465 tons. Such disappointing data has become a natural result of additional restrictions imposed on the export from the country. However, the reduction can be considered as a temporary phenomenon, required to adapt to the new conditions. And given the current low demand for tin, reduction of export volumes will not have a material impact on the balance of «supply and demand».

This year, the Indonesian supply averaged between 7 and 9 thousand tons of metal per month. Since September 2013 the volume of exports for the first time reached the level below 1,000 tonnes. In general, this indicator observed for the first time since April 2007. Export restrictions on trade through ITRI exchange were introduced in the autumn of 2013. In November 2014 there was an additional constraint. Its essence consists in the prohibition to sell both manufacturer and tin, and products made ​​from it. The main objective of this restriction — the termination of the metal spread under the guise of a product (the same solder). But in September, figures were much brighter. Over the month, exports increased by 51% compared to the August results. Delivery volumes totaled 5441.55 tonnes. In relation to the same, when the export amounted to 785.99 tons, the figure has increased by 7 times compared to September of 2013. During the period from May to June, the export volume exceeded 12 000 tonnes per month. In July there was a slight decrease, but the August indicators have reached such a low level, as has not occurred throughout the year.

In late October the Indonesian government announced considering new restrictions on the export and production of tin. This decision was taken under the influence of reduce the cost of metal. Restrictions also cause a decrease in production volume by 50% in 2015. The following year, the smelting of tin in Indonesia is limited to 40 000 tonnes, thus increasing its value. However, the association of tin exporters believes that the government should take into account the opinion of representatives of the industry. Analysts believe that in the coming period 5letny tin deficit will reach 60,000 tons. metal consumption growth exceeds supply by 1−2% per annum. The following year, the ratio will be 366 000 Offer-consumption against 369 000 tonnes.

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