Tin trades on the Indonesia Commodity & Derivatives Exchange (ICDX) have completely halted because of significant supply disruptions in the country, Fastmarkets heard on Wednesday November 14.
The country is the world's second-largest producer of the metal, but the price of tin on the London Metal Exchange continued to show little reaction to the interruption to trading.A joint statement on October 15 by the ICDX and Indonesia Clearing House announced the suspension of PT Surveyor Indonesia, one of the country's key smelter inspectors. After that, around 1,385 tonnes of material were traded on the exchange by October 26.ICDX data showed that 1,650 tonnes has traded on the exchange since that time, with mostly state-owned supply from PT Timah eligible for export.The suspension fueled the uncertainty about global tin supply flows, resulting in Fastmarkets' assessment of the European tin premium climbing to a 21-month high on October 30 of $380-450 per tonne, and remaining elevated throughout November so far. It was $370-440 per tonne on November 14."The market is scrambling [to secure metal] and premiums are rising. Stocks...