The International tin Council had begun a week-long session in London, with producers pressing for a substantial rise in the official price of the commodity.
The International tin Council had begun a week-long session in London, with producers pressing for a substantial rise in the official price of the commodity. The meeting comes only a week after ministers of the major tin exporting nations agreed in Jakarta to seek a revision of the council's buffer stock price ranges.
SYNOPSIS: The council's opening session took place at its London headquarters on Tuesday (17 July). For the first time, it is meeting after ministers from producing countries have gathered separately. The producers have stressed that international controls on tin prices have not been working. since January 1977 when buffer stocks created by the council were all sold. The market price is now about sixteen per cent above the official ceiling. And most of the producing nations want the ceiling price raised to reflect supply and demand.
Tin council executives will also face pressure to see that the floor -- at which the council buys to support prices reflects higher production costs.
The major producing countries are represented on the council, the exceptions being China and Brazil.
Bolivia is regarded as the most militant producer. It derives between forty and fifty per cent of its export earnings from tin and is aware of just how much unchecked price fluctuations can severely disrupt the national economy.