Indonesia’s PT Timah said on Tuesday it expects to produce 45,000-48,000 tonnes of refined tin this year, down from 49,029 tonnes in 2008, Reuters reported. But production could be even lower than planned if prices continue to fall, Timah corporate secretary Abrun Abubakar said. “We will see the price situation. We don’t want to flood the market because it would push down prices.” Timah’s annual refined tin production peaked at 58,325 tonnes in 2007.
He also told reporters that that the company had switched away from annual contract sales in 2009: "Buyers now only seek short-term supply for three months, not a full year contract, because of slowing demand. We see more opportunity for spot trade as demand is not fixed yet."
“Until now, Timah has not received a single buyer who is willing to buy on annual contract," Abubakar told Metal Bulletin. Timah will try to move more aggressively into the spot markets instead. "If the price is right, we will release more tin on the spot market," he said.
