Indonesia's tin exports to drop sharply in 2015 - AETI

The Association of Tin Exporters of Indonesia (AETI) predicts a huge drop in tin exports from the country in 2015. According to Iavin Safianto, President of AETI, the total tin supply from Indonesia could drop to less than 70,000 tons.

The drop in exports is mainly due to the new Tin Export Regulation Permendag 44/2014, introduced by the Ministry of Commerce to raise the quality requirements for exported tin to a high standard. Therefore, the export of tin in the form of ingots does not expect a sharp decline. The new rules have already entered into force on November 1, 2014. In addition, mining concession rates have recently been revised by the Department of Energy and Mineral Resources, which will result in lower shipments.

Mining regulation and the introduction of new export rules could significantly reduce the export of tin to non-bullion. Fourth quarter exports are expected to remain in the range of 20,000 tons to 25,000 tons. Any recovery in prices could lead to an increase in exports at the end of this year. Aggregate exports for the entire 2014 are likely to reach their lowest level since 2007. AETI predicts further decline throughout 2015.

Indonesian tin exports in the first ten months of this year amounted to 66,211 tons. Tin bullion exports account for 33 percent of the total. Exports of tin bullion have grown since September 2013, when regulation came into effect making it mandatory for everyone to trade in pigs for local processing before exporting from the country.