JAKARTA, Sept 26 Indonesian refined tin
shipments are expected drop by around 75 percent in
September-December from the same period last year, the country's
leading cargo surveyor said, after new trading rules slashed
output in the world's top exporter.
The rules aimed at establishing a benchmark price in
Indonesia have already driven the nation's biggest tin producer,
state-backed PT Timah, to halt shipments and declare
Analysts and traders are unsure how long it will take tin
buyers and the country's 47 registered tin exporters to adjust,
with the move helping push up international tin prices
by 9 percent this month.
From September until year-end, Southeast Asia's largest
economy will likely ship only 10,000 tonnes of tin, said the
director of the minerals and coal division at PT Sucofindo, a
state-owned company. That compares with around 38,000 tonnes in
the same period in 2012.
"We estimate tin exports from September to December ... will
be around 10,000 tonnes," said Sufrin Hannan.
"With the drop in tin exports we calculate that our revenue
from the mineral and coal sector will also drop, because our
revenue is volume sensitive," Hannan said, adding that only a
few containers of tin had been exported so far this month.
Surveying mineral and coal cargoes is one of Sucofindo's top
three sources of revenue.
Timah declared force majeure as customers had not registered
to trade tin on the Indonesia Commodity and
Derivatives Exchange (ICDX), the only approved exchange for
physical tin trade. But the firm expects exports to improve in
the next two months.
Other producers have also halted exports and lawmakers could
face pressure to revamp the rules forcing producers to trade on
the ICDX, with lower mineral sales hurting the rupiah currency
- currently trading at its lowest in more than four
Benchmark London Metals Exchange tin prices were at around
$23,200 a tonne on Thursday, slightly above ICDX prices at
(Reporting by Yayat Supriatna; Writing by Fergus Jensen;
Editing by Joseph Radford)