Tin group puts off talks on future of supply quotas
Tin group puts off talks on future of supply quotas
KUALA LUMPUR (Reuter): Major world tin producers yesterday
deferred talks on the future of an export quota scheme designed
to slash huge stock overhang, but Indonesia remained adamant that
the supply restrictions be abandoned.
"The question of whether to extend or end the quotas will be
re-examined at the next meeting in Bolivia in September," said a
delegate to the Association of Tin Producing Countries (ATPC)
executive committee meeting.
Indonesia, which has been actively pushing for an end to the
supply curbs, assured members it would abide by its quotas
pending an ATPC decision, a senior Indonesian official said.
"The government will abide by the quotas," said Rozik
Soetjipto, head of the Indonesian delegation to the meeting.
Indonesia breached its 1994 quota of 30,500 tons and is said
to have exported some 34,500 tons last year. The ATPC also groups
key global tin producers Australia, Bolivia, China, Malaysia,
Nigeria, Thailand and Zaire.
Rozik said he reiterated Indonesia's stand on the need to
dismantle the quota scheme. Indonesia said previously it would
question the role of the scheme, considered the lynchpin of the
Kuala Lumpur-based ATPC, at this meeting.
"I reminded the meeting of the Indonesian position. No
decision was taken...we didn't ask others to give their views,"
Rozik said. "We want them to be prepared when the issue is raised
again in Bolivia. We are not pushing for anything now."
Delegates said some members would like to study market
developments in the coming months before making a stand.
Jakarta's stance is aimed at freeing state-run PT Tambang
Timah, the world's largest tin miner, from external limitations
ahead of its stock exchange listing later this year.
The ATPC's quotas, aimed at cutting a world stock overhang
estimated at 73,000 tons in March 1987 to around 20,000 tons,
were imposed after tin prices collapsed when the International
Tin Council ran out of funds to support the market in late 1987.
The quotas capped members' exports at 90,600 tons in 1995,
down from 1994's 98,000 tons.
The ATPC said at the close of the meeting on Thursday that tin
exports by members fell 18.1 percent to 18,552 tons for the first
quarter of 1995 against the same period in 1994.
It said members' tin exports in 1994 totaled 103,220 tons, 5.3
percent above the quota limit of 98,000 tons.
Tin stocks fell to about 37,000 tons early this year but are
still higher than the ATPC's stated goal of 20,000.
Some ATPC officials said rising non-ATPC production, smuggling
by some members and slow demand growth had kept prices well below
average production costs and forced some mine closures.