By Paul Ploumis 17 Jun 2015 Last updated at 07:02:14 GMT
JAKARTA (Scrap Monster): The preliminary data released by the Indonesian Trade Ministry shows that Tin exports from the country surged higher during the month of May this year. The exports during the month totaled 6,263 tonnes, rising sharply by 23% from 5,071 tonnes exported during April. The above data is based on the figures reported by surveying companies as per pre-shipment checks carried out by them.
The tin sales by Indonesia continue to run well above the export cap of 4,000 tpm set by Bangka-Belitung Governor Rustam Effendi. The most recent data suggests that sales during the first 16 days of June have already crossed 4,760 tonnes. The exports during the last two days have skyrocketed to 1,600 tonnes. According to industry experts, the sudden surge in exports is on the back of fears that the administration may further limit the export quota. Stricter control measures are expected to be announced soon, they added.
The tin smelters are being forced to push their sales in order to raise cash towards Ramadan bonus payments to workers. Also, smelters must settle all their royalty payments as mining activities need to attain “clean and clear” status starting this August. The new rules may result in closure of smelters that fail to comply with the regulations. This is expected to lower production levels, which in turn may lead to lower export volumes.
Meantime, tin prices which had fallen nearly 15% in 2014, have fallen by almost 24% year-to-date in 2015. Indonesia-the key producer of tin, has been implementing various restrictions on tin shipments out of the country in an attempt to reduce the glut situation. Further curbs on exports look inevitable.