The world tin price strengthened in today’s trading in line with the plan of Indonesia, the world’s second-largest tin producer, to stop exports.
On Wednesday (24/11/2021) at 15.08 WIB, it was recorded at US$ 39,050/ton, up 0.46% from yesterday’s position.
President Joko Widodo at the Bank Indonesia Annual Meeting, Wednesday (11/24/2021) said that Indonesia could stop tin exports in 2024 as part of efforts to attract investment to the resource processing industry and improve the country’s external balance.
He also stressed that the government may stop allowing exports of bauxite and copper ore by 2023.
This decision was taken because Indonesia has been selling raw commodities for too long, which has cost the country more export earnings and jobs in the manufacturing industry. Indonesia’s move to stop tin exports by 2024 will have more of an impact on the tin industry in the long run.
Currently, the monthly export of tin bars in Indonesia averages around 6,000 metric tons (mt), and annual exports reach around 70,000-80,000 mt. The world demand for tin ingot is currently around 340,000 mt in 2021.
If the export of tin bars is banned by 2024, global supply outside Indonesia will not be able to cover the supply gap left. Thus, the supply gap in the world tin market has the potential to increase significantly