Indonesian smelters halt tin ingot exports -assoc

Smelters in Indonesia's main tin producing region of Bangka island have halted all tin ingot exports and will meet this evening to decide the length of the ban, an industry group said on Monday.

Smelter owners on Bangka island are due to meet from 1300 GMT to discuss the export ban, the Indonesian Tin Industry Association, told Reuters.

"Smelter owners had agreed to stop all tin ingot exports," said Murod. "(It) started two days ago -- owners are not doing shipping until unspecified time limit."

He added that the meeting had been arranged with the Bangka governor Eko Maulana Ali, and that smelter owners could re-start if prices returned to between $22,000-$24,000 a
tonne range.

Tin, mainly used in solders for electronics, struck a record high above $33,000 in April but like other base metals has slumped in recent sessions, as fears of a global recession fueled another round of selling in base metals.

At 0741 GMT, benchmark tin on the London Metal Exchange fell more than 8 percent to a low at $18,401 a tonne on fears over economic uncertainties.


On Friday, Murod said tin exports from Southeast Asia's largest economy, could fall by more than half to 40,000 tonnes per year, if benchmark tin prices held at current levels or below.
"The market is in deficit despite price action, and this would help shore up the market," said Robin Bhar, an analyst at Credit Agricole in London. "It wasn't that long ago we were trading $28,000-$29,000... this news will help to stabilise.

"It is not going to take it all the way back up to $29,000 but effectively, it puts a floor under the price," he added. "This sort of news, if it is confirmed and followed through ... this will have a major impact on the market."

Indonesia, the world's top refined tin exporter, expects to produce 90,000 tonnes of refined tin this year, up from 78,965 tonnes in 2010, on expectations of improved weather conditions.

Trade ministry data showed that Indonesia's tin exports from January until August this year were 67,989.84 tonnes.

Bangka island, off Sumatra's east coast, is the world's largest tin-producing area. Indonesia supplies about 30 percent of the world's tin consumption.

A crackdown on illegal mining, tighter export regulations, declining onshore reserves and rain that had hindered production in Indonesia helped drive the tin rally earlier this year.
Small smelters on Bangka island depend on traditional miners for between 70 and 80 percent of their ore supply.

The Indonesian ministry for coal and mining, energy did not respond to telephone calls or text messages on Monday. Source: Reuters