Tin producers open talks on quota system<\/p>\n
KUALA LUMPUR (AFP): The world's key tin producers opened a
\nmeeting here yesterday to evaluate eight years of joint efforts
\nin limiting supply to restore tin's luster amid fresh calls by
\nIndonesia to scrap the quota system.<\/p>\n
The eight-member Association of Tin Producing Countries (ATPC)
\nkicked off semi-annual talks with discussion of administrative
\nand financial matters.<\/p>\n
\"Officials will sift through statistics on production and
\nexport, including evaluation of the global excess stocks on
\nTuesday ahead of the three-day meeting of the executive council
\nfrom Wednesday,\" an ATPC official said.<\/p>\n
The council is to conduct an annual review the association's
\nsupply rationalization scheme (SRS) and make recommendations for
\na ministerial decision on whether to continue or scrap the
\nsystem.<\/p>\n
ATPC's ministers are to meet in mid-September in Bolivia to
\ndecide on the council's recommendations.<\/p>\n
The ATPC -- grouping Australia, Bolivia, China, Indonesia,
\nMalaysia, Nigeria, Thailand and Zaire -- implemented the SRS in
\n1987 hoping to reduce global excess of tin stocks from 76,000
\ntons to 20,000 tons by end of 1993.<\/p>\n
But by end of 1994, rolling stocks remained high at almost
\n50,000 tons on unofficial estimates.<\/p>\n
The SRS sets voluntary limits on the exports of member
\ncountries, which agreed in September last year to reduce exports
\nto 90,600 tons in 1995, from 98,000 tons a year earlier, to boost
\nprices.<\/p>\n
While Thailand appears to favor continuing another year the
\nSRS, Indonesia has made fresh calls to join Malaysia in calling
\nfor the scheme to be scrapped, saying a free market might
\nexpedite the recovery of the languishing global tin market.<\/p>\n
Industry officials said the quota system had also been
\nrendered irrelevant as some member countries were producing less
\nthan the quota allocated to them, while others have continued to
\nexceed the limit.<\/p>\n
China, which exceeded by 171 percent its 1993 export quota,
\nexported 44, 379 tons last year compared with its allocated quota
\nof 20,000 tons, industry officials said.<\/p>\n
But an ATPC source said \"the overall stock surplus figures
\nlook better this year than a year ago.\"<\/p>\n
The price of tin on the Kuala Lumpur Tin Market ended Monday
\neight sen lower at 14.15 ringgit per kilogram (2.2 pounds) from
\nFriday's close, after hitting a two-year high of above 16.00
\nringgit (US$6.40) about six months ago.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/tin-producers-open-talks-on-quota-system-1447893297",
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"sponsor": "Okusi Associates",
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