Reuters Indonesia's Timah to cut tin output to support market

* To slash output by as much as 8 pct to prop up prices
* Analysts say cut won't lift prices much, mkt in deficit
* More chances for spot trade with fewer long-term deals (Adds analyst comment, details)

By Fitri Wulandari

JAKARTA, April 14 (Reuters) - Indonesia's PT Timah Tbk (TINS.JK), the world's biggest integrated tin miner, said on Tuesday it expected to cut its refined tin output by as much as 8 percent this year to avoid depressing global prices further.

But analysts said the move would not have a major impact on the market unless the Indonesian government took stronger action to curb exports in the world's top exporter, despite the prospect of another global supply deficit this year.

The firm planned to produce 45,000-48,000 tonnes of refined tin this year, down from 49,029 tonnes in 2008, although this could be scaled back even further if prices continued to fall, Timah spokesman Abrun Abubakar said.

"We will see the price situation. We don't want to flood the market because it would push down prices," Abubakar told reporters on the sidelines of a forestry conference.

The price of tin, used in food packaging and soldering of electronic components, has fallen about 56 percent from an all-time high of $25,500 a tonne hit last May as the global economic crisis hit, although has stabilised in recent months.

The price of tin MSN3 on the London Metal Exchange stood at $11,100/$11,105 a tonne on Tuesday. more...