Yoga Rusmana and Eko Listiyorini
June 6 (Bloomberg) — Tin exports from Indonesia, the world’s largest supplier, surged last month to the highest level since December as trading of the metal on a local exchange before shipments increased.
Shipments more than doubled to 12,778.8 metric tons in May from 5,219.3 tons a month earlier, data released by the Trade Ministry today showed. Sales were 9,242 tons in May 2013, the data showed.
Rising supplies from Indonesia may extend a decline in tin prices from a six-month high reached in April. The Southeast Asian producer in August mandated that refined tin be traded through the Indonesia Commodity and Derivatives Exchange, or ICDX, before shipment, seeking to create a benchmark price and challenge the London Metal Exchange as the global price setter.
“It’s a surprise because although ICDX volumes rose strongly last month, the volume traded is a lot less than the tonnage of ingot checked for exports,” said Peter Kettle, research manager at ITRI Ltd. “There were some concerns about shipping metal safely in April after the navy seized a shipment in March.”
Indonesian navy seized 2,888 tons of tin from a vessel in early March on suspicion the shipments failed to meet government trade rules. The ICDX said March 14 that the navy had cleared the cargo to resume shipments to Singapore.
Trading on ICDX rose 26 percent to 7,810 tons in May from 6,215 tons in April, according to data from the Jakarta-based exchange. Tin for delivery in three months fell 0.7 percent to $23,089 a ton on the LME at 4:45 p.m. Jakarta time. The metal reached $23,849 on April 24, the highest since October.
Exports in May, based on surveyors’ report before shipments, comprised of 11,540.3 tons of tin ingots, 463.5 tons of solder and 775 tons of other tin products, the ministry said today. Shipments in January-to-May period fell 22 percent to 34,455.6 tons from a year earlier, according to ministry data compiled by Bloomberg.
Copyright 2014 Bloomberg.
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