Indonesia sets prices for tin

According Satriono Edie, who is head of the Regulatory Agency for trade futures, now the world price of tin on the London Metal Exchange establishes Indonesia. Once in respect of exports of tin new law, the cost of metal has been applied widely used in the production of smart phones and other products, has jumped to the maximum 6-month high. At the same time exports to the Indonesian factories were forced limited, given the fact that only one company located in Jakarta, has licensed the right to export ingots. All these factors have a global impact on the growth of world prices for the metal — now at a cost of tin takes a position in front of copper, aluminum and zinc. At the same time the original law to crack down on illegal tin mining and control prices, not raised the export of solder. As a result, the export of tin expectedly declined, exports went up the solder. Now the Indonesian government is considering all possibilities in order to remove this kind of loophole.

New government legislation being developed at the moment, will provide for a separate license for the export of solder, tin alloy or pure ingot. As a result, to be able to export tin integrated producers need to register subsidiaries in order to obtain a license for a certain type of product, with one license provides a single product. In addition to the already registered exporters provided the need for renewal of the license before March 1 of the following year.

Even the revised Indonesian government export rules for tin will take effect from November this year. They are aimed at tightening control over the implementation of the raw product to form ingots. Under the new rules, to adjust the standards in the production of tin — 99.9% for bullion, for other forms of 99.93%. the maximum value of the solder also change, to 99.8%, and other products — up to 96%. Those standards provide for the packaging, labeling, shape and size of tin ingots solder and sent for export. According to the Ministry of Commerce, according to the new classification there are 4 categories of tin.

Despite the fact that the revision of the law, according to the Director General of Foreign Trade, will increasingly regulate the business climate and ensure domestic production of raw materials, stricter export regulations and new metal content standards can dramatically reduce the volume of exports of Indonesia.