Indonesia’s tin exports surge as supply concerns dissipate

Indonesia’s exports of tin recovered in November, in a sign that concerns are easing over supply disruptions caused by the country’s crackdown on illegal mining.

Shipments from the world’s second-largest producer almost tripled to 7,459 tons on a monthly basis, and were valued at $268 million, according to trade ministry data.

Exports had slumped to 2,643 tons in October, the lowest since January, after President Prabowo Subianto instructed authorities to move against illegal mines in the top-producing region of Bangka-Belitung.

The campaign has underpinned tin’s rally this year, which surged 41% as the best-performing contract on the London Metal Exchange. Investors are betting on higher consumption by the artificial intelligence industry at a time when supplies from other major producers, the Democratic Republic of Congo and Myanmar, have also faced disruption.

Indonesian exports have been returning to normal as the crackdown on tin smuggling ends and trade quotas are reissued, Mysteel Global said in a note.

The global market for mined tin will swing to a surplus next year thanks to rising mine supplies, according to Mysteel, which also cited rising shipments from Myanmar.

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