Most tin smelters in Bangka stop operation due to falling prices

At least 18 tin smelter plants in Bangka Belitung, the country's main tin producing region, have stopped operation due to the sharp drop in tin prices in the world's tin markets during the last two months, Kompas reported on Friday.

Chairman of the Association of Indonesian Tin Processing Companies (AITI), Apik Chakib Rasjidi, said on Thursday that the price of the tin metal had been too low for the smelter plants to operate profitably.

"We are trying to pressure tin speculators in the commodity bourses in a bid to stabilize the prices in the world's market," he was quoted as saying.

The plunge in the tin price began in June on a report of an oversupply in the world's tin market. The tin price which reached about US$7,820 per ton in early June continued to decline in the last three weeks. At present, the tin price is only about $7,015 per ton.

Tens of smelter plants are now operating in the province of Bangka and Belitung (Babel) to take the advantage of the growing number of illegal tin mines in the province . The smelter plants are mostly grouped in AITI. The country's major tin producers PT Timah and PT Koba Tin operate larger smelter plants in the province. (*)