Bloomberg Indonesia's Timah May Sell 50,000 Tons of Tin in 2009

June 17 (Bloomberg) -- PT Timah, the world's second-largest tin producer, may sell more this year than previously estimated if prices and demand continue to recover, executives from the Indonesian company said. "If prices rise to about $18,000 to $20,000, we can enter the spot market to add to contractual sales; that can boost sales to 50,000 tons," Corporate Secretary Abrun Abubakar said today in Jakarta. To be sure, "we still target sales volume of 45,000 tons to 47,000 tons this year," Abrun told reporters.

Tin futures in London, which traded today at $15,325 a metric ton, have gained 43 percent this year on speculation the global economy is recovering, reviving metals demand. Former Federal Reserve Chairman Paul Volcker said June 11 the global economic slump is easing "most clearly" in the U.S. and the U.K.

"Prices of commodities are recovering, which can help demand" for tin, Finance Director Krishna Syarif said. From the second quarter onward, "sales can be at least 4,000 tons a month," after a total of about 11,000 tons in the first three months," Syarif said. Timah sold 46,438 tons of tin in 2008. The average tin price may range from $14,000 to $15,000 a ton in the second half, Syarif said. Tin futures on the London Metal Exchange averaged $10,938 a ton in the first three months.

Pangkalpinang-based Timah may increase sales through spot buyers if prices climb, Syarif said. About 42,000 tons of the 47,000 sold last year were contractual sales, while the rest was through the spot market,Corporate Secretary Abrun said.

For Related News and Information:
Link to Company News: TINS IJ CN Top Stories: TOP Top
Metal Stories: METT Most-read metal stories: MNI MET
--Editors: Jake Lloyd-Smith, Matthew Oakley