* Indonesia targets tin price of $25,000-$29,000/T this year
* Tin ingot export volumes to drop further in Sept -official
By Yayat Supriatna and Michael Taylor
JAKARTA, Sept 20 (Reuters) - Indonesia is aiming for as muchas a 25 percent jump in its tin prices from current levels, aregulatory official said, just weeks after the world's topsupplier of the base metal made it mandatory for exporters totrade on a domestic exchange.
State-owned PT Timah, Indonesia's No.1 tinexporter, and 18 others stopped shipments earlier this month,blaming new trading regulations that Jakarta hopes will help thecountry establish its own benchmark pricing and boost the valueof its exports.
"By imposing the new tin trade rules we have set a tin pricetarget at $25,000 to $29,000 a tonne this year," Sutriono Edi,head for Indonesia's Commodity Futures Trading Regulatory Agencytold Reuters on Friday.
"It is better for us to export less volume but for highervalue and better prices, rather than export a bigger volume butwith low value and low prices," he added, without giving detailson any further efforts the government may take to boost prices.
The Southeast Asian nation has already banned exports of tiningots with less than 99.9 percent purity apart from making itcompulsory for all 47 registered exporters to trade on adomestic exchange before shipping material.
Indonesia's tin ingot exports fell to an 11-month low inJuly and were little-changed for August partly because of thepurity rule. While Edi expects shipments to drop further inSeptember due to the new trading regulation, he sees higherprices making any decline worthwhile.
Earlier this month, a trade ministry official said exportswould return to normal in one to two months.
Lower tin supply from the top exporter has pushed upbenchmark London prices by 18 percent since the end ofJune to around $23,285 per tonne currently.
The tin contract on the Indonesia Commodityand Derivatives Exchange (ICDX) last traded at $23,195 a tonne,versus $21,500 at the start of September. But liquidity has beena problem as only five sellers, including PT Timah, have joinedthe exchange.
A second group of 18 smelters from Indonesia's maintin-producing Bangka-Belitung region have refused to registerwith the ICDX, and instead want to trade on the unapprovedJakarta Futures Exchanges (JFX).
Government officials have repeatedly urged the ICDX and JFXto merge their tin contracts and create only one Indonesianbenchmark price for the base metal. (Editing by Himani Sarkar)
- Politics & Government