Indonesian President Joko Widodo has announced that tin exports will be stopped in 2024 in order to boost investment in downstream processing and manufacturing, Mining.com reported.
Futures prices for the metal, which is widely used in the electronics industry, rose above $40,000 a tonne for the first time on the news, hitting a record high. Spot prices for tin have been trading at a premium of more than $1,000 a tonne to futures prices this year, indicating a severe shortage in the spot market.
At a gathering of central bank stakeholders, Mr. Joko cited the success story of nickel to lay out his plan to make Indonesia a hub for electric car manufacturing, Reuters reported.
"We started with nickel [export restrictions]. We are expected to stop exporting bauxite next year. Exports of copper ore will stop next year, and then tin. It is hoped that these resources will be exported as semi-finished or finished products [rom Indonesia, thereby increasing their added value ".
Indonesia's ban on nickel exports prompted the European Union to bring a case to the World Trade Organisation. Despite the lure of international markets, Indonesia, the world's second-largest tin producer, has had an unclear export strategy. Since 2018, Indonesia has banned the export of unprocessed tin and requires exports to contain at least 95% sikmetal.
Since the outbreak, the pressure on the tin market has increased and prices have doubled this year.
Global tin supply has recovered from COVID-19, but demand is growing much faster than its supply, according to the latest industry report from market analyst Fitch Solutions. Demand for tin, used in semiconductor welding in electronics, has soared during the pandemic, mainly due to increased sales of home medical equipment and personal medical supplies.
The price of tin has continued to rise this year as global stockpiles of refined tin have fallen.
Tin is also an important part of photovoltaic cells.
