Tin Prices Rise to 6-Month high on new Indonesian Trade Rule

Tin Oct 07, 2013 No Comments

TinTin 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.

via Indonesian Tin Exports Tumble to Six-Year Low on Trade Rule – Bloomberg

Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.

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