Trade data: Tin exports by Indonesia bounced back sharply in August

JAKARTA (Scrap Monster): The preliminary trade statistics released by the Indonesian Trade Ministry indicates sharp recovery in tin exports during the month of August this year. The preliminary data released yesterday is based on pre-shipment checks carried out by surveyor companies.

According to Trade Ministry data, the country exported 5,379 tonnes of tin during August this year. This is significantly higher by almost 62% when compared with the exports during the prior month. The Indonesian tin exports had totaled 3,320 tonnes during July this year. The country had not exported tin during the month of August last year, on account of the delays caused by the implementation of new export rules by the Indonesian government.

The above data includes solder and other tin products as well as refined tin ingots. The solder exports have risen sharply to 238 tonnes in August. Incidentally, the tin solder sales by state-run PT Timah has witnessed increased momentum during the month.

The Bangka Belitung provincial government has announced that it would take necessary steps to restrict tin supply from the province. According to province secretary Yan Megawandi, a task force has been formed to oversee tin prices and its production. The task force would also recommend ways to step up revenues from tin sector. The province considers temporary halt in production as one of the several ways to ensure price stability. The province has also decided to form a separate task force to deal with unregulated mines operating in the province. The primary objective of the team would be to protect the country’s natural environment and mine workers from the damage caused by unregulated mining operations, Megawandi added.

Meantime, the state-run tin producer PT Timah reported decline in production and revenue during the initial six-month period of the year, in spite of rising tin prices and efforts to reduce costs during this period. The company’s tin ore production from mine operations dropped sharply by 37% to 9,107 tonnes during Jan-June ’16, in comparison with the previous year. The onshore mining output tumbled by 68% to 1,831 tonnes, whereas offshore output totaled 7,277 tonnes, falling by 15% over the previous year. Refined tin output totaled 9,250 tonnes, dropping by almost one-third. The tin sales declined 17% year-on-year to total 11,682 tonnes during the half-yearly period. Refined tin stocks plunged by 46% to 3,967 tonnes. On the other hand, tin slag inventory levels remained flat at 8,064 tonnes. It must be noted that Timah had produced 26,361 tonnes of tin-in-concentrate and 27,431 tonnes of refined tin in 2015.

According to ITRI, extreme weather conditions had resulted in serious disruption of mine operations during the first quarter of the current year. In addition, the delays in obtaining export permit had led to drop in sales during the second quarter. ITRIU expects the refined tin output and sales to show significant improvement during the second half of 2016. The latest production forecast by PT Timah for the full year 2016 stands at around 24,000 to 27,000 tonnes. The addition of new tin mining vessels is likely to lift the 2017 output to 30,000 tonnes, ITRI noted. The total Indonesian tin production in 2016 is likely to total around 60,000 tonnes of refined metal, added ITRI.