JFX launched its physical tin contract officially on August 21, exporting 1,410 tonnes of tin out of Pangkal Pinang, the capital of Bangka Belitung, Indonesia’s tin-producing region, according to the International Tin Association (ITA).
The inaugural cargo contained material that was reportedly produced by Indonesian state-owned producer PT Timah, which is the country’s largest tin producer.
PT Timah's backing of the new contract could suggest a paradigm shift in an already hermetic Indonesian production landscape, with private smelting in the region crippled after the suspension of key smelter inspector PT Surveyor back in October 2018.
Since then, tin trade out of Indonesia, which takes place principally on the Indonesia Commodities & Derivatives Exchange (ICDX) before being cleared for export, has dwindled considerably, with just 1,135 tonnes of tin traded for export in August, down by 84.9% from 7,495 tonnes of tin traded in June.
ICDX under threat
Indonesian refined tin exports fell by around 32% year...