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Tin Up Over 3%; Indonesia Tin Export Ban Boosts
September 27, 2011

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Shanghai. Three-month tin futures on the London Metal Exchange rallied more than 3 percent on Tuesday, on hopes of more bailout measures by euro zone officials and after Indonesian smelters rolled out a full export ban on tin ingots.

Prices were at 20,950 a metric ton by 03:20 GMT, up 3.08 percent.

Tin prices rebounded, along with other base metals, after sentiment improved on hopes that Europe was putting a plan together to shore up its banks. 

Market players said that the banning of tin exports by smelters in Indonesia’s main tin-producing region of Bangka island added a boost to the metal’s rally on Tuesday. 

The full export ban on tin ingot will come into effect from Oct. 1 until global prices recover, an industry group said.
 
The Indonesian Tin Industry Association said exports would resume only if tin prices rise above $25,000, while state-owned tin firm Timah said the ban would be lifted if prices reached between $23,000 and $24,000 per metric ton.
 
Timah share prices jumped more than 7 percent on Tuesday. 

One trader said that LME tin premiums in Singapore have risen from $50 about 10 days ago to the current $650-700, due to tightening supplies.

“Now, you can’t get the usual tin brands here like MSC (Malaysia Smelting Corp) or Phuket. All you get is Chinese tin, which comes with the high premium,” he said.

China imposes a 10 percent duty on its tin exports, which contributes to its high premium outside of the country.

Traders reported higher tin premiums in Europe last week as declining inventories in LME warehouses and strong Chinese demand caused tightness in the market, with more gains eyed on expectations of further robust demand from China.       

Reuters