Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Tin’s Drop May Endanger Producers, Malaysia Smelting Says

Dec. 5 (Bloomberg) -- Tin prices that have dropped 41 percent from a record in April may endanger smaller producers of the metal, according to Malaysia Smelting Co.

“Twenty percent of the world’s producers will go out of business at the current price level,” Chief Executive Officer Mohammad Ajib Anuar said in an interview in London today. “It can happen very quickly because they are sensitive to prices.”

Smaller producers of tin, used in solders that join metals together and in packaging, face output costs of $20,000 to $25,000 a metric ton, according to Anuar. Tin for delivery in three months traded at $19,925 by 12:57 p.m. on the London Metal Exchange, compared with the all-time high of $33,600 reached April 11.

Malaysia Smelting produced about 45,000 tons of tin last year, including its Indonesian operations, according to the CEO. The company is the industry’s second-largest producer.

Producers in Indonesia, which supplies 40 percent of global exports, banned overseas deliveries as of Oct. 1 in an effort to drive prices back to $25,000 a ton. Malaysia Smelting’s Indonesian unit shipped 400 tons to Singapore on Nov. 26, the first export since September.

To contact the reporter on this story: Agnieszka Troszkiewicz in London at atroszkiewic@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.