As an effect of increased government regulation that requires proper identification based on new metal standards, Indonesia’s tin exports is seen to decline during the rest of the year.
Indonesia, the top tin supplier in the world, made available for trade 91,612 metric tons of the metal in 2013. For this year, however, it could drop to the lowest in seven years at 80,000 metric tons to show a 13% negative difference.
Tin was in a supply shortage last year that caused its value to rise by 15%. The shortage was partly due to the higher standards Indonesia implemented in the quality of ingots for export that included raising the minimum tin content and adding the requirement of having to pass through a domestic exchange similar to the London Metal Exchange (LME). To circumvent the new rule, some shipments have resorted to misidentifying their products which the new regulations are responding to.
Futures for a ton of tin on the LME climbed to $22,950 at noon Singapore time to show a 0.2% increase from yesterday. It reached its highest in nearly a month on Tuesday at $23,070.
Exports from the south east Asian country declined by 22% to 34,456 tons during the first five months compared to 2013, but doubled in May to 12,779 tons from April’s 5,219.
Analysts from BNP Paris SA believe that the tin market will continue to have a shortage as global demand exceeds supply for the fifth consecutive year in 2014. Additionally, this year’s tin deficit of 13,000 tons may decrease to 10,000 next year, but prices are still expected to climb to $25,000 before the year ends and reach $27,000 in the middle of 2015.
The material has been provided by InstaForex Company – www.instaforex.com
As an effect of increased government regulation that requires proper identification based on new metal standards, Indonesia’s tin exports is seen to decline during the rest of the year.
Indonesia, the top tin supplier in the world, made available for trade 91,612 metric tons of the metal in 2013. For this year, however, it could drop to the lowest in seven years at 80,000 metric tons to show a 13% negative difference.
Tin was in a supply shortage last year that caused its value to rise by 15%. The shortage was partly due to the higher standards Indonesia implemented in the quality of ingots for export that included raising the minimum tin content and adding the requirement of having to pass through a domestic exchange similar to the London Metal Exchange (LME). To circumvent the new rule, some shipments have resorted to misidentifying their products which the new regulations are responding to.
Futures for a ton of tin on the LME climbed to $22,950 at noon Singapore time to show a 0.2% increase from yesterday. It reached its highest in nearly a month on Tuesday at $23,070.
Exports from the south east Asian country declined by 22% to 34,456 tons during the first five months compared to 2013, but doubled in May to 12,779 tons from April’s 5,219.
Analysts from BNP Paris SA believe that the tin market will continue to have a shortage as global demand exceeds supply for the fifth consecutive year in 2014. Additionally, this year’s tin deficit of 13,000 tons may decrease to 10,000 next year, but prices are still expected to climb to $25,000 before the year ends and reach $27,000 in the middle of 2015.
The material has been provided by InstaForex Company – www.instaforex.com
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