ICDX launches tin commodity trading
Wednesday, February 1 2012 - 03:51 PM WIB
The first trading of tin (INATIN) in the ICDX was opened at the price of US$24.640 per lot, and later closed at US$ 24.500, with a total transaction volume of two lots.
The closing price was a bit higher than the tin closing price of US$24.290 recorded at the London Metal Exchange (LME) on Tuesday.
"The closing price has been a good start for INATIN and the Indonesian tin industry," said PT Timah Tbk Corporate Secretary Abrun Abubakar in a press statement on Wednesday.
He said that based on the specification of INATIN contract, one lot comprised of 5 metric tons of tin having 99.9 percent tin content and with a price fluctuation of minimum US$5.
The trademarks of tin traded on Wednesday were Banka and Kundur. "The existence of tin market through ICDX will bring a positive impact to the Indonesian tin industry as all local players can participate to determine the tin prices," said Abrun.
He said that there were 9 companies participating in the tin transactions. They are PT Timah Tbk, 3H CO Ltd, Gold Matrix Resources Pte Ltd, Purple Products Pvt Ltd. PT Tambang Timah, PT Mitra Stania Prima, PT Comexindo International, PT Timah Industri, and PT Refined Banka Tin.
The ICDX tin trading will be conducted in one session everyday from Monday to Friday, except on holidays.Previously, it was reported that the first tin trading had been delayed from January 12 to February 1 this year due to the fact that traders in Europe were still in a mood of holidays, while those in China, Hong Kong, and other countries were about to enter the Lunar New Year festivity.
PT TimahTbk President DirectorWachid Usman said that a number of Indonesian tin producers agreed to sell their tin commodities through futures trading with ICDX to set alternative benchmarks and maintain tin prices at relatively stable level given that tin selling prices at the London Metal Exchange (LME) was often times lower than expected.
Editing by Benget Besalicto Tnb.