Tin exports from Indonesia, the world’s largest, plunged to the lowest level in at least six years as a new rule requiring that the metal be traded on a local exchange before shipment restricted cargoes.
Futures advanced 5.5 percent to $24,000 a ton on Oct. 4, the highest price since March. Tin has outperformed the five other main base metals on the LME over the past 12 months, including copper, aluminum and nickel.
Tin rallied to a six-month high in London last week after the policy took effect and smelters curbed exports, with only one exchange in Jakarta authorized to trade ingots before export. The rule is aimed at helping Indonesia displace the London Metal Exchange as the venue for setting the benchmark price, according to the Commodity Futures Trading Regulatory Agency. Tin has the best outlook among the six main industrial metals because of global shortages, said Standard Bank Group Ltd.