Indonesian Tin exports plunged 63% in January

JAKARTA (Scrap Monster): The preliminary trade statistics released by the Indonesian Trade Ministry indicates sharp fall in tin exports during the month of January this year. The regulatory controls implemented by the country’s administration and recent flood situation in the Bangka region have impacted the shipments out of the country.

According to Trade Ministry data, the country exported 2,486 tonnes of tin during January this year. This is sizably down by almost 63% when compared with the exports during the same month a year before. The Indonesian tin exports had totaled 6,770 tonnes during January 2015.

Firstly, as per new regulations, producers are allotted Permission to Export (PE) letters for a period of six months. The PE letter has mention to maximum tonnage of tin that producers are allowed to ship over the six-month period. Many producers, who had already reached the six-month quota, had to halt overseas shipments during January. It must be noted that producers could renew export activity after renewal of PE from February 1^st onwards.

Another reason for the sharp drop in exports was the suspension of offshore mining activities in the Bangka Belitung region since last week of January. The exports from the region are likely to remain subdued as inspectors from the Ministry of Energy and Mineral Resources are expected to carry out audit of region’s smelters over the next ten days.

Moreover, heavy floods in Bangka region has resulted in limited access to smelters and mining areas. Many areas have also reported electricity disruptions. The flood situation may badly impact February tin export figures. Incidentally, PT Timah has announced shutdown of its Nudur mining area on account of heavy floods. Meantime, its other mining operations and smelters will continue to operate as usual.