INATIN explained

INATIN (Indonesian Tin Exchange) which agreed to settle with the coordination of the Indonesia Commodity Derivative Exchange (ICDX) and PT Banda Graha Reksa. It was formally launched on February 1, 2012.[1]

Requirements

Session

Before the trading session begins, Tin Commission will decide the minimum or suggested opening bid price. The session is only 15 minutes, from 2.30 to 2.45 p.m. West Indonesian Time (7.30 to 7.45 a.m. UTC time).[2] One minute after closing, the closing price will be announced.

LME, KLTM and INATIN

London Metal Exchange (LME) and Kuala Lumpur Tin Market (KLTM) are tin contract markets (not physical), while INATIN is a physical exchange.

Members

Whoever fulfills the requirements:[1]

Custodian

The custodian is PT Banda Graha Reksa, a state-owned company.[2]

Price maker

At the first trade on February 1, 2012 there were 9 members; they opened for an equivalent of a metric ton at $24,640, closing at $24,500. LME closed at $20,290. The transactions were still very low with only 2 lot (10 metric tons) transactions, but INATIN hopes it will change the price taker position to be a price maker.[1]

Conflict

About 90 percent of Indonesian Tin Association's (ITA) 28 members denounce INATIN: "We won't sell tin to that market."[3] But the initial producer members above are the biggest tin producers with production at more than 50 percent.

Peraturan Menteri Perdagangan R.I. Nomor 32/M-DAG/PER/6/2013 stated that tin block and other types of tin should be traded first at bourse before the tin can be exported, for tin block initial August 30, 2013, while other types of tin initial Januari 1, 2015.[4]

Notes and References

  1. Web site: February 2, 2012 - . 2 February 2012 .
  2. Web site: December 15, 2011 - 12 January Pemasaran Perdana INATIN.
  3. Web site: New tin market at stake amid internal conflict . December 22, 2011.
  4. Web site: Peraturan Menteri Perdagangan R.I. Nomor 32/M-DAG/PER/6/2013 . March 19, 2015 . https://web.archive.org/web/20140611052656/http://www.timah.com/v2/css/img/uploaded/Permendag%20No%2032_2.pdf . June 11, 2014 . dead .