July 10 (Bloomberg) -- Tin shipments from Indonesia remained near a five-month high in June even as trading dropped on the only exchange in the world’s biggest exporter that can transact refined metal before it’s sent overseas.
Exports totaled 12,376.8 metric tons last month from 12,778.8 tons in May, Trade Ministry data showed today. Shipments in May were the highest since December, according to ministry data compiled by Bloomberg. Sales were 11,111.4 tons in June 2013.
The supplies of the metal used as solder may extend the 2.9 percent drop in prices last month. The Southeast Asian nation increased the minimum content for exports and ordered that ingots be traded through the Indonesia Commodity and Derivatives Exchange, or ICDX, from last year before shipment. The country is seeking to create a benchmark price and challenge the London Metal Exchange as the global price setter.
“This is much more than I expected,” Peter Kettle, research manager at ITRI Ltd., said by e-mail after the data was released. The figure “explains the relative weakness of the tin market recently.”
Futures for delivery in three months dropped 0.4 percent to $22,200 a ton on LME at 2:38 p.m. in Jakarta. Futures have fallen 6.9 percent from a six-month high in April.
Trading on the ICDX declined 40 percent to 4,660 tons in June from May, according to data from the exchange.
Exports in June, based on surveyors’ reports before shipment, comprised 11,252.2 tons of ingots, 230.6 tons of solder and 894 tons of other products, the ministry said.
Shipments fell 15 percent to 46,832.4 tons in the first half from 55,011 tons a year ago, according to Bloomberg calculations based on ministry’s data.
To contact the editors responsible for this story: James Poole at email@example.com Jake Lloyd-Smith, Jarrett Banks