London 25/05/2016 - The exodus of Refined Bangka Tin (RBT) tin ingots from Indonesia last month has led to an influx onto the LME and has been piling downward pressure on premiums in Singapore as well as outright prices, sources told FastMarkets.
Tin smelter RBT, which is closing, exported roughly 1,750 tonnes of 99.9 percent purity tin ingots from Indonesia last month, liquidating stocks held at its smelter there.
And 100 tonnes of tin have been delivered onto the LME in Singapore on each day since May 10 - the total reached 1,200 tonnes today. This is RBT material that has been available via LME clearing, according to FastMarkets sources.
Due in large part to the warranting of RBT metal over the past month, LME tin stocks have reached a nine-month high of 6,980 tonnes.
"RBT delivered 1,750 tonnes at zero premium to the market," a trading source said. "They just delivered to the LME - I picked up 100 tonnes."
RBT-brand tin will be officially delisted from the LME as of the June 16. The last day for warranting will be June 15, the LME said in March.
"A number of brokers are offering out at different prices," a second trading source said.
Prior to its shuttering, RBT was the largest of Indonesia's 29 active independent tin smelters and had plans to produce 12,000 tonnes of tin this year.
And premiums for tin have come under pressure in Singapore, slipping $10 this week to a range of $70-100 per tonne. Still, premiums are at relatively low levels already so downside pressure is limited, sources said.
Similarly, prices have already taken at hit, falling to a three-month low today of $15,425 per tonne on the LME.
"The combination of a pick-up in Indonesian exports, the RBT stock liquidation and an opportunity for China to export all seem to have led to a price correction. SHFE prices are back at a discount to the LME now so some of the selling pressure is likely to have stopped now," FastMarkets head of research Will Adams said.
(Editing by Mark Shaw)