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Tin and CPO prices being controlled in Indonesia


AlfredSokol said: "Price controls are being implemented in [url=http://www.thejakartapost.com/detailbusiness.asp?fileid=20070831.L03&irec=2]Indonesia[/url] in order to keep the supply and demand in check. Indonesia is the second largest producer of both crude palm oil and tin. [quote] To balance supply and demand, the government has been trying to ease CPO exports by imposing higher export tax rates (6.5 percent from only 1.5 percent). This is aimed at increasing domestic supply and pushing prices downward. However, CPO prices are still on the rise as strong demand boosts prices in the international market and the domestic market as well. Indonesia is now considering placing quotas to limit CPO exports. But while the benefits are still unclear, this measure could trigger supply disruptions from Indonesia, which eventually could further boost prices. Thus the objective of lowering domestic cooking oil prices may become even more challenging. [/quote] Does this ever work? I think the markets should decide."

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