Source:  ITRI Ltd

The following is a summary of the information circulated by ITRI Ltd.  For more details and the original text please visit http://www.itri.co.uk.

Indonesian private smelters confirm ban, discuss plans for 2012 (24 Nov 2011)

Independent smelter members of the Indonesia Tin Association (ITA) agreed yesterday to continue an export halt to the end of this year, although Indonesia’s two large integrated producers, PT Timah and PT Koba Tin, did not attend the meeting at which the decision was affirmed. The ITA is continuing discussions in Singapore today and tomorrow with international tin buyers on marketing arrangements in 2012, while plans to establish a local Indonesian tin market evolve.

Meanwhile Timah, under long-term contracts, plans to ship some 4,000 tonnes per month in November and December, and Koba Tin plans to ship 400 tonnes this month.   According to Johan Murod, secretary of the ITA, all participants want Timah and Koba Tin to stop exporting.

In a related development the Indonesian Commodity & Derivative Exchange (ICDX) announced it will launch a physical tin contract (and also a palm olein contract) in early 2012.  Material for the physical tin contract will be supplied by members of the ITA.  A tin futures contract will likely follow later in 2012.

 

China refined tin imports soared in October (24 Nov 2011)

According to China Customs data, China imported 3,990 tonnes of refined tin in October, the highest level since April 2009.  Most of the imports were from Thailand, Indonesia and Malaysia.  The China domestic tin price has remained at a big premium to the LME from August until now, attracting a large refined tin flow into the country.  The cumulative import volume January – October 2011 was 13,731 tonnes, up by 3.4% compared to the same period last year.

ITRI estimated imports will remain at a robust level this month.  However, the differential between tin prices in China and the LME has narrowed with the decline of China tin prices in the second half of November.  Coupled with the current soft consumption, the import levels in November and December are expected to be lower than in October.

China imported 1,258 tonnes of tin concentrate (gross weight) in October, up by 8.4% y/y.  The total import in January – October also increased by 40% y/y to 20,765 tonnes.  The main contributor to the rise was neighbouring Myanmar, which supplied 16,858 tonnes (gross weight), up by 300% last year, although it is understood the material is very low grade.


Yunnan Tin maintenance shutdown (22 Nov 2011)

Yunnan Tin Company (YTC) began a 35 day regular maintenance shutdown of its main smelter at Gejiu, Yunnan province on Sunday.  The shutdown will have only a relatively small impact on the Company’s planned annual tin ingot output.

The Gejiu smelter has an annual refined tin capacity of 70,000 tonnes and was last closed for maintenance in September 2010.  YTC also has a smelter in Chenzhou city and together with the Gejiu plant produced in total 59,160 tonnes of refined tin in 2010, making it the world’s largest producer for the sixth year in succession.


Glencore reports solid markets, rising metals production (21 Nov 2011)

Commodities giant Glencore International said output across most of its commodity products rose in the third quarter with tin showing the biggest increase relative to last year.  The group’s tin production comes from its Sinchi Wayra subsidiary in Bolivia, which operates the Colquiri zinc-tin mine.


Public-private alliance for conflict free minerals trade (18 Nov 2011)

The  US-based capacity building organisation Pact has launched a Public-Private Alliance for a Responsible Minerals Trade (PPA) with the US Department of State, the US Agency for International Development (USAID) and a coalition of businesses from the electronics industry and civil-society organisations.  The ceremony took place in Washington, D.C. on 15 November  2011.

The PPA is an innovative public-private partnership centred building a conflict-free, productive, and responsible mining and minerals trade in the DRC and the Great Lakes Region (GLR) in Africa.  Its goal is to break the linkages between the illicit minerals trade and violence and human rights abuses in the GLR.  It uses the combined financial and technical resources of the public, private and non-governmental partners to assists in the development of a transparent chain of custody system, such as the ITRI Tin and Tantalum Supply Chain Initiative (iTSCi), which will allow businesses to identify minerals from mines that have been audited and are verifiably conflict free.

Millions of people in the GLR are involved in and depend on mining and minerals trade for their livelihoods.  A de facto or formal ban on sourcing minerals would result in lost revenues, unemployment, smuggling, fraud and displacement.  It is, therefore, vitally important to establish a conflict-free supply chain which has the confidence of the ‘end-user’ in the electronics and other industries and supports the DRC in developing its resources responsibly.