Price Performance Indicator
ICDX tin price at the close of August 26 moved up from last week to the level of $25,200.00 per tonne, the improved performance of Tin was due to the Chinese government's support for the mining sector.
In order to support the strengthening of the economy, China has taken many steps including increasing funding support for infrastructure projects and increasing support for private companies and mining companies. China will issue new policies, including increasing financing by CNY300 billion to support its economy affected by the Corona virus. The country will utilize the remaining CNY500 billion special bond quota and will support the centrally-owned power generation company to issue CNY200 billion yuan in bonds. The authorities will take appropriate steps and maintain a reasonable scale of policies and make good use of policy tools, and intensify efforts to consolidate the foundation for economic recovery. The stimulus provided by China is expected to be able to support the movement of tin prices.
At the same time, industrial plants in various sectors in Sichuan and Chongqing have been ordered to shut down or limit production since mid-August to save power for household users. This was done after the electricity crisis triggered by high temperatures. Factories and companies were forced to stop working, resulting in operational rationing. The reduction in the allotment of electricity usage causes tin production to decrease so that it can strengthen global tin prices.
Indonesian Government Will Regulate Illegal Tin Mining
Ministry of Energy and Mineral Resources (ESDM) will regulate the tin Work Plan and Budget (RKAB), especially mining companies indicated to be collaborating with illegal mines or Mining without Permits (PETI). “Mining companies that get additional results beyond their plans can reduce the potential for state revenues. Even though the government wants to maximize state revenues," said Minister of Energy and Mineral Resources Arifin Tasrif in his statement, Monday (29/8). The Ministry is currently still discussing with the Task Force (Satgas). The RKAB, which does have a direct positive influence on the government, will certainly continue to be maintained. , but those that are problematic or opaque will be brought under control. The control of illegal tin mining is carried out because the resulting state losses are quite large. With this control, there will be an impact on the decline in the performance of tin exports.
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Source: ICDX Research