Timah to Reduce Contract Sales in 2011

Oct. 29 -- Indonesia's PT Timah, the world's largest tin exporter, plans to sell up to 50% of its tin production next year in the spot market, Metal Bulletin reports. "Our contract obligations usually take up 80-90% of Timah's production. But for next year, we intend to lower it to 50-60% of our total production," said spokesman Abrun Abubakar. Cutting contract obligation will allow Timah "more flexibility" said Abubakar. "Timah cannot take advantage of the rising prices today, because our contract consumers are our first priority. We hope to sell up to 40-50% of our output next year in spot market," he said. Timah has informed its customers of its intention to supply less material on contract.

Timah’s contracted sales in 2010 are about 42,000 tonnes, although the company now expects its production this year to fall short of 40,000 tonnes. The company has not decided its production target for 2011, but said it will be "around this year's target of 45,000-48,000 tonnes," said Abubakar.