JAKARTA (Commodity Online): The Indonesia Commodity and Derivatives Exchange (ICDX) will launch its tin futures contract on Wednesday as part of their effort to create an alternative to the benchmark on the London Metal Exchange.
Indonesia is world’s largest tin exporter accounting for 40 percent of global exports. The ICDX exchange is supported by the government through the Commodity Futures Trading Regulatory Agency and PT Timah, the country’s biggest producer, Bloomberg reported.
The ICDX tin contract covers 5 metric tons of metal with purity of 99.9 percent, a Bloomberg report quoting Megain Widjaja, CEO fo ICDX said.
Delivery will be from Pangkalbalam and Muntok on Bangka Island in the main tin- producing region.
Tin prices have rebounded after declining sharply in August and September but has gained 27% in January, 2012.
India’s Multi-Commodity Exchange (MCX), the fifth largest commodity exchange in the world, has copper, aluminium, nickel, lead, zinc contracts listed but is yet to start tin futures.
