ICDE trades tin physical contract

Indonesia, the world?s largest tin exporter, now has its own trading on tin physical contract. The Indonesia Commodity & Derivatives Exchange (ICDE) inaugurated Thursday the listing of tin in its trading system, coded INATIN.

The trading is an alternative to current benchmark of London Metal Exchange. Robert J. Bintaryo, Head of Commercial Berau at the Trade Ministry?s Commodity Futures Trading Supervisory Agency, said the contract would cover the commodity of 99.98% purity and would be traded between 2:30 pm to 2:45 pm from Monday to Friday.

?Tin industry players grouped under INATIN will determine the selling price of tin, the standards of which will be determined by INATIN Committee. So it will have a significant impact on the stability of the country?s tin prices eventually,? said Robert.

INATIN Committee is a grouping of tin producers participating in the system, with Wachid Usman, President Director of PT Timah ? the world?s largest tin-exporting company ? having been named as its chairman.

The contract will be offered in lots, with one lot equaling to 5 metric tons. The price is set in U.S. dollar. The ICDE also trades palm oil and gold. (giok)