Tin output from Indonesia, the world’s largest exporter, may plunge about 20 percent this year as bad weather disrupts mining, the energy ministry said.
Output may drop to about 85,000 metric tons compared with a full-year target for production of 105,000 tons, Witoro Soelarno, secretary to the director-general of minerals, coal and geothermal, said in an interview. Production last year was also 105,000 tons, according to a Dec. 31 estimate from the ministry.
Lower output from Indonesia may help to sustain a rally that’s made tin the best performer on the London Metal Exchange in 2010, while hurting local producers’ shares. Commerzbank AG analyst Daniel Briesemann warned earlier this month that tin supply was tightening. Indonesia usually exports about 85 percent of production for use in solder and packaging.
“Weather anomalies are expected to affect the achievement of this year’s production,” Soelarno said by phone from Jakarta today. “This year’s exports may highly depend on the price, especially for shipments from small smelters,” Soelarno said, declining to give a forecast for export volumes. more...
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