Tin Prices to Gain Support form Indonesia’s New Rules for Tin Exports

 

Indonesia’s top tin exporter PT Timah said it has stopped tin shipments since August 30 due to the new rules, reconfirming the Indonesian government’s determination to implement the new regulations. According to the company, it has stopped tin shipments and declared force majeure since new regulations forced all of the 47 tin exporters registered to trade on a local exchange. Otherwise, they will face legal sanctions

 

Indonesia’s government announced earlier that tin ingot with tin content below 99.9% is not allowed to be exported since July 1, but lead content for tin exports is loosened from 100ppm to 300ppm, with requirements for iron content remaining unchanged at 50ppm. 

 

Indonesia has not yet released tin exports for August, but SMM expects the volume to remain low given the influence of Ramadan. Tin exports in the future may be subject to the implementation of the new regulation, meaning tin exports will be largely affected if the government enforced the new rules strictly. 

 

As for price trends, LME tin prices leveled off recently following the strong rebounds from late July to early August, due mainly to rising expectation for QEs taper and the escalating Syrian tensions, both driving up the US dollar index and in turn weighing base metals down. 

 

However, the bright economic figures and Indonesia’s restriction on tin exports benefited LME tin prices. In this context, the Fed’s September policy meeting will be decisive for LME tin price in Q4.