Jakarta, 15 October 2021 - ICDX again recorded the highest tin price entering the fourth quarter (Q4) 2021 at USD37,760 per metric ton. The catalyst that influenced the increase in tin prices was, among others, the easing of the Covid-19 case rate, which boosted the global economic recovery which triggered industrial and manufacturing activities to revive. As a commodity that is widely applied in industry and manufacturing, of course, the demand for tin also increases. At the same time, the energy crisis that is currently engulfing the world has contributed to an increase in basic prices for all lines from upstream to downstream, including tin, where the increase occurred from the mining side, production operations to logistics costs due to using crude oil in the process. These two main catalysts have triggered tin prices to continue positive throughout this year.
The ICDX tin price has again managed to reach above the price of the London Metal Exchange (LME), which until Tuesday (12/10) was at USD37,755 per metric ton. Until Q3 2021, ICDX recorded a total tin export of 22,084.31 metric tons, with a total value of more than Rp9.7 trillion. This amount exceeds the transactions in the first semester. This shows that tin export performance continues to improve, driven by the re-opening of economic activities in export destination countries, and increased smelter production.
"ICDX is optimistic that tin prices will continue to show strengthening until the end of 2021. With its mandate as a trading platform for tin exports, ICDX will continue to strive so that one of Indonesia's strategic commodities can become a center of reference for global market players so that they do not need to depend on the market. abroad. Thus, Indonesia can dominate and have sovereignty over tin as a non-renewable commodity," said Head of Logistics at ICDX, Bambang Setioso.
The increase in ICDX tin prices was also followed by an increase in export destination tin contracts (TINPB) which recorded an average increase of 61%, and domestic tin contracts (LTINPB) recorded an average increase of 78% in Q3 2021. Seeing this, Research & Development ICDX projects that the price of tin by the end of the year has the potential to touch resistance levels in the range of USD39,000–USD40,000 per metric ton and support levels in the range of USD35,000–34,000 per metric ton.
Based on data from the United States Geological Survey (USGS) 2021, Indonesia controls 18.43% of the world's tin reserves, the second largest after China. Not only that, Indonesia is also in second place as the largest tin-producing country at 24.51 percent. This shows the importance of Indonesia as the world's largest tin exporter, and how this can have a significant impact on the global tin industry if tin is traded in a structured manner at the source. The growing demand for tin and the stronger influence of the global Indonesian tin market will encourage the acceleration of the Indonesian economy and the sovereignty of its commodities.