Indonesia’s export slump ripples through the tin market. (Photo: Reuters) This was the lowest monthly volume since August 2015, when Indonesia imposed an export regime to exclude illegally mined metal.
Indonesian exports fell by 12% to 75,000 tonnes last year, but that was still equivalent to around a fifth of global demand.
Ironically, the change in mine permitting process from annual to every three years is meant to cut red tape and smooth the flow of exports over the start of every year.
The annual export approval process has in the past caused tin export volumes to drop in January. But this year there were no shipments of ingot at all last month and it appears it will be some time before flows return to normal.
China has been buying so much Indonesian tin. It imported 3,500 tonnes of Indonesian tin in 2021 but lifted purchases to 24,000 tonnes in 2022. Last year's 24,475 tonnes helped drive total Chinese imports to an all-time high of 33,470 tonnes.
China's tin sector is facing both the potential future threat of lower Indonesian exports and the immediate problem of reduced volumes of mined concentrate from the Man Maw tin mine in neighbouring Myanmar./.
VNA
