Indonesia’s TIN EXPORTS Set to Decline as Low Prices Curb Output
Jumat, 06 Juli 2012 | 16:29
Refined-tin shipments from Indonesia, the largest exporter, probably dropped to the lowest level in five months in June as miners reduced production because of lower prices and bad weather disrupted ore supplies to smelters.Exports fell 7.2 percent to 7,300 metric tons last month from 7,866 tons in May, according to the median estimate of four smelter executives and an analyst in a Bloomberg survey.
That’s the least since shipments of 5,380 tons in January and compares with sales of 10,875 tons in June 2011. The Trade Ministry is expected to release the data next week.
Prices have plunged 26% from a six-month high in February on concern the debt crisis in Europe and slower growth in China may erode demand for the metal used in soldering and packaging.
Falling supplies may limit the slump, helping boost revenues at producers including Malaysia Smelting Corp and PT Timah, the world’s second and third-largest producers. Prices below $20,000 ton have some adverse impact on small-scale production in Indonesia, according to ITRI Ltd.
Last month’s shipments may be as low as 7,000 tons, Peter Kettle, research manager at the St Albans, England-based ITRI, said by e-mail July 2. “My reason is lower prices resulting in lower volumes through the independent smelters.”
Three-month tin fell 0.3 percent to $19,100 a ton on the London Metal Exchange at 4:55 p.m. in Singapore yesterday. The metal dropped 4.2 percent in June for the fifth straight monthly loss. The price peaked this year at US$25,880 a ton on Feb. 8. (Bloomberg/tw)