Last week there was a spate of comments from Indonesian government officials regarding the possible introduction of tin export or production quotas. Not surprisingly these conflicting reports have been feeding price volatility around the current record levels, so we have refrained from blow-by-blow reporting of each one.
On Tuesday a senior source at the Ministry of Trade told Reuters that that there was no plan for tin quotas, while on Wednesday a source at the Ministry of Energy and Mineral Resources said that the government was considering its options and would make a decision before the year-end, talking about the need to stop tin prices falling. Subsequently a more senior official at the same ministry suggested that current prices were too high. A further interview with official number two indicated that quotas might relate to production rather than export volumes.
Some of the reports have suggested that ITRI is advising the Indonesian government on this issue. Our position is as follows:
1. ITRI has been in discussions with the Ministry of Energy & Mineral Resources for some time in the interests of improving transparency and communication;
2. ITRI supports any moves by the Indonesian Government which lead to a better regulated, responsible and sustainable tin industry;
3. ITRI is not advising the Indonesian Government directly on export quota arrangements or fair levels of tin price.
