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Indonesia tin production decreases

11 August 2015

The Indonesian government has developed additional restrictions on domestic production of tin. Now production companies need to obtain a special certificate. Its presence confirms that it is not used illegally mined raw material for the production of tin. But apparently, the innovation will have little influence on the tin market. And this despite the fact that an impressive number of manufacturers still have not got the certificate. As before, the market is showing oversupply.

This measure is not the first, developed by the government. Since 2013, a ban on the export of semi-finished products and raw materials. There was also a limited trade in the metal through ICDX. This measure is intended to strengthen export controls and tin production. However, the effect achieved by the application of these measures, was temporary. Total tin market could adapt for 2 years. The share of Indonesia has fallen by more than 30%, thereby reducing its impact. Control on obtaining raw materials was carried out before. But only this year, starting in March of the enterprise for the production of metal must have a certificate. The producers point to delay the issuance of licenses by the Government. Apparently, so it is supposed to limit the offer, at the same time increasing the market power.

Meanwhile, Malaysia imported increasing amounts of tin concentrate and exported volumes. Gradually Malaysian manufacturers occupy market niches vacated by Indonesia. China previously imported Indonesian tin goes for raw materials delivered from Myanmar. It is doubtful that the measures taken by Indonesia, will have on the tin market is a significant impact.

ITRI ​​predicts that in 2016−2017 the annual production of tin will increase an average of 40 000 tonnes. The growth will come from new projects for metal production. Expected increase in the volume of approximately 10% of tin production is now. Perhaps this number will be able to fully compensate for the restrictions imposed by Indonesia. According to ITRI 8 projects from developed fourteen start before the end of 2017. The projects have already determined the annual production capacity, will produce a total of 28, 340 tons. The production capacity of the other projects is estimated at about 11 000 tons. Geographically the projects are concentrated in Australia and Congo.

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