Indonesian smelters temporarily halt tin exports

Indonesian tin smelters including the world's largest integrated tin miner PT Timah, have agreed to temporarily stop exports of refined tin, a move which is expected to stop tin prices from falling further.

Twenty four tin smelters will temporarily stop shipping the metal used in soldering electronic goods and in soft-drink cans, to overseas market starting from October 1, said Eko Maulana Ali, the governor of main tin-producing Bangka-Belitung islands in a press conference on Monday night in Pangkalpinang, the islands' capital.

"Concern on global economic slowdown has affected tin prices. We have discussed efforts to tackle the issue because our economy depend on the commodity," said Eko after a meeting which was attended by 24 tin smelters including PT Timah and PT Koba tin, a unit of Malaysian Smelting Bhd.

"One of measures that we have agreed to control tin prices is to temporarily stop exporting refined tin," the governor added.

Tin price at the London Metal Exchange fell to below $19,000 per tonne on concern of another global economic recession following financial trouble in Europe.

The metal hit a new record of above $30,000 a tonne in April.

PT Timah Tbk President Director Wachid Usman supported the decision because tin prices are already too low.

?Negative sentiment over financial crisis in Europe has caused tin prices to fall despite robust demand for the metal. There should be no reason for tin prices to fall," said Wachid..

?Tin prices have fallen below $ 20.000 and that's not normal. We will wait until prices return to normal between $23-24.000 a tonne," he added.

Seperately, Johan Murod, secretary general of the Indonesian Tin Smelters Association said smelters want tin to be named as strategic commodity and proposed to sell the metal under a government-to-government deal. (ikranagara/giok)