Indonesia Fails to Launch Tin Trading on Schedule

Indonesia Commodity & Derivatives Exchange (ICDX) postponed start of tin trading while the exchange planned to start the trading on Thursday. The exchange keeps studying for the rules and will start the trading in the month, according to Japanese trading firm source. World largest tin exporter of Indonesia tries to lead the international trading by launching the index making trading but the mood is cooling down recently.

Indonesia is world No.2 tin producing country after China. Indonesia is No.1 tin exporter with 96,000 tonnes of export in 2010, which represents around a fourth of world consumption.

Indonesia Tin Association (ITA) started tin export control in October 2011 amid international market slump and announced launch of tin trading with participation of 23 refineries in November 2011.

The export control finished in late November but the tin trading attempt continued. ICDX tries to expand the trading to match world largest tin trading at Kuala Lumpur Tin Market (KLTM).

ICDX couldn’t launch the trading in the month when the exchange is still discussing for the rules.

Indonesia has increased the bargaining power in tin market recent years when China turned into net importer of tin. However, tin mining development increases in Southeast Asian countries and African countries. The expanding supply source could undermine Indonesian power in the market.