World's Top Supplier Forcing Export Customers to Buy on Local ExchangeIn this article how a country's could manipulate the price of commodities whether its directed or undirected actions of the country's rules. However, the situation in the Middle-east as well one of the main issues that will bring up the prices for commodities.
In Indonesia lately, they want to control the market by forcing the exporters to sell through local exchanges. Moreover, steering trade away from the Global market center (LONDON), had made turmoil into the (metal market) special for tin. In such country who produces 1/3 (one third) of the wolds tin would impact the whole market.
By doing so, Indonesia hopes that hedging will let them gain more control over the price of its most valuable commodities. As a result, some or most of contractors will be losing theirs because many of buyers have not signed up for to trade on the new exchange, which led the prices rocket.
In view of the prices I will show another chart that explains how much tin Indonesia produce, and you will imagine how is the new condition will effect the market.
In the end I guess Indonesia should think-over about their precious commodities, and have more official sellers than only one "In the tin market, state-controlled PT Timah is the only major seller registered to trade the metal on an Indonesian exchange".