ICDX tin prices weakened by 0.91% in mid-February burdened by the appreciation of the dollar following the release of US economic data.
Tin this week was burdened from the macroeconomic side, during trade US economic data released US non-farm payrolls reaching 571,000 in January, far exceeding expectations of 193,000 and previously 260,000. The unemployment rate has fallen to its lowest level in recent years, making investors more wary of the next Fed rate hike, especially as Fed officials deliver. Hawkish statements. Risk assets weaken when the US dollar rises.
From domestic side, the Ministry of Energy and Mineral Resources (ESDM) is making preparations to anticipate plans to ban exports in the form of tin ingots because they assessed that tin absorption in the country itself has so far not been optimal. Director General of Mineral and Coal of the Ministry of Energy and Mineral Resources Ridwan Djamaluddin (02/02) said that the use of tin metal so far has been intended for products tin chemical, tin solder dan tin plate. Therefore, before the export ban is enforced, he hopes that a more downstream tin industry in the country can be developed.
This export ban plan will also have an impact on the destination countries for Indonesian tin exports. One of them is China, considering that China is Indonesia's largest tin export destination from Bangka Belitung. In circulating news, the export value reached USD 753.52 million, equivalent to IDR 11.2 T. Exports of the Bangka Belitung Islands Province in December 2022 amounted to US $ 190.37 million, down 40.09 percent compared to the same month the previous year (December 2021) which recorded at US$317.78 million. In addition, Singapore, India, South Korea and Japan are among the five main export destination countries for tin during January-December 2022.
Indonesian Tin Downstreaming Plan
President Joko Widodo expressed his opinion regarding the export of mineral commodities abroad which are still carried out in the form of raw materials One of them is what happened to the tin commodity. President Joko Widodo said that Indonesia is the number 1 largest exporter of tin ore in the world. Meanwhile, China is currently the largest tin importer in the world. This means that the tin ore that has been produced by RI on a large scale is exported to China. In fact, if this tin is further processed domestically, the added value can increase up to 69 times. Therefore, he pushed for the downstreaming of tin in the country to be accelerated. President Jokowi also emphasized that Indonesia must be consistent in carrying out the mining commodity downstream program. The Provincial Government of the Bangka Belitung Islands supports and is committed to carrying out the directives of the President of the Republic of Indonesia Joko Widodo which prohibits tin ore mining and illegal tin export, in order to encourage national economic growth, specifically in the Bangka Belitung Archipelago Province.
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Sumber: ICDX Research