Tin trading on ICDX for period 1 - 08 Mar, dropped 93.79% to 18 lots compared to same period last month. A new regulation from Directorate General of Foreign Trade that take effect from Mar 1, 2019, has a big impact on the decreased of export volume due to the smelters including PT Timah Tbk has to fulfil the new requirement before they could export the tin.
Meanwhile China is facing its own supply problem.Production in Myanmar appears to be in structural decline as easily accessible ore is exhausted. According to ITA (International Tin Association), China's imports of tin concentrates, the vast majority of which come from Myanmar, fell by 25 percent last year.
ICDX's New Tin Physical Contract
Effective per 4 March 2019, ICDX has launched a new tin physical contract by using Bonded Logistics Centre (PLB) warehouse as a delivery point after traded in Exchange. The use of bonded warehouses would help to eliminate in-country risks for tin buyers and sellers by guaranteeing the legal status of tin stored by PLB. It expect to be a solution for delivery issues that already lingering since late October 2018.