Reuters reported that Indonesia's monthly tin exports increased in October to meet contractual sales agreed before smelters imposed a shipment ban but analysts say production shutdowns and stricter enforcement to plug the leaks will be needed to achieve higher prices.

Data last week surprised tin investors, showing Indonesia's refined tin exports rose 4% last month to 5,441.58 tonnes versus September's 5,233.06 tonnes though shipments fell 38% versus a year ago. This came despite the decision earlier this month by a group of more than 20 smelters in Indonesia's top tin producing region of Bangka island to extend a self imposed ingot shipping stoppage until the end of December.

Indonesian smelters began a tin ingot export ban on October 1st 2011 in an effort to boost prices, which they would like to see above USD 23,000 per tonne.

Mr Johan Murod secretary at the Indonesia Tin Association said that "Because Timah is a government company, so we allowed them to fulfill their contract to buyers.”

Mr Stephen Briggs analyst of BNP Paribas said that "It's fair to say that the number was higher than one might have expected. The number is still quite high, which does suggest that there have been some leakage. They need to make sure they plug the leaks it's as simple as that. The cost of continuing producing while not generating cash through sales was tempting some smelters to breach the export stoppage.

Trade ministry data showed that there are 39 tin smelters approved by the Indonesian trade ministry to export refined tin. Exports totaled 92,487 tonnes last year and 99,287 tonnes in 2009.

Mr Briggs said that "What would persuade the market more would be producers actually closing down, and we haven't had much news on that front. November's export numbers will likely give a better reflection on the effectiveness of the shipping stoppage in Southeast Asia's biggest economy. If November export data isn't significantly lower, there is going to be enormous skepticism here."

(Sourced from Reuters)