The average of ICDX's tin price at the beginning of April was observed to have remained stable above the level of USD 27,000 per ton. Meanwhile, the total volume of Indonesian tin transactions for export destinations in March reached more than 6,500 tonnes, of which 45% of transactions were made through the ICDX. The disruption issue from the supply side has become a positive catalyst that supports the movement of tin prices.
The largest tin producer in Indonesia is targeting tin production of 34,000 tons and a sales plan of 31,000 tons for 2021, said Director of Finance and Risk Management of PT Timah Tbk, Wibisono at the 2020's Annual General Meeting press conference (6/4). The target is much lower than the previous year due to the uncertainty of the tin ore supply issue. In 2020, PT Timah Tbk reported tin production of 45,698 tons and sales of 55,782 tons.
Meanwhile, in the global market, China as the world's largest tin producer is also facing problems with disruptions of raw materials supply, especially those from Myanmar due to seasonal rains that are heavier than usual and border closures due to the Covid-19 outbreak in the city of Ruili. Apart from supply problems, starting in late March, some smelters in Yunnan province were closed for environmental inspection.
Babel's Provincial Government Urged to Increase Tin Royalties
In a meeting with Commission VII DPR RI (7/4), the Provincial Government (Pemprov) of Bangka Belitung again urged the Central Government to increase the royalty fee for tin from 3% to 10%, said the Governor of Bangka Belitung Islands Erzaldi Rosman. In addition to the proposed increase in royalty rates, Erzaldi also proposed that the 65 percent share in PT Timah Tbk, which is currently owned by the Indonesian government through PT Indonesia Asahan Aluminum (Persero) as the mining holding company, can grant 14 percent of shares to the Bangka Belitung Provincial Government. Although there has been no further discussion, the proposed increase in royalties has become the focus of tin market players because it will affect smelter revenues.