Timah denies large unsold tin surplus

PT Tambang Timah, the world's largest integrated tin producer, on Tuesday said it had higher inventory this year than last but denied market talk that it had a major unsold surplus. Traders on the Kuala Lumpur Tin Market (KLTM), Asia's only tin market, have been worried that Timah may have excess tin after the company said it was seeking to boost exports to Asia because of the slowdown in the US economy.

In a statement released in Kuala Lumpur, Timah denied that it was in an overstocked position although it said sales in the first quarter of 2001 fell 25% from the level a year ago, resulting in a higher stock level.

"Lower total sales volume and the company's policy to maintain the same production level as last year also resulted in higher inventory," corporate secretary Prasetyo Saksono said.

"However, this does not mean that the company has an overstock which needs to be sold, since most of our tin has already its buyers," he added.

Saksono said Timah's total sales in the first quarter of this year was 6,744 tons, down from 9,017 tons in the same period last year.

Sales to Asia alone fell 27% while exports to the United States and Europe eased 14% and 43%, respectively, he said. (*)