The Strait tin market: the Penang price

An account is given of the history and operation of the Straits Tin market and the Penang price. The procedure by which the official ruling tin price is determined is presented and the way in which bids are treated is outlined: the price declared in Penang is the result of a joint operation by the two Malaysian smelters and is arrived at by finding the highest price at which the whole of the day's offerings for sale can be sold, thus reflecting the marriage of the offerings of the individual mine producers with the demand for Straits Tin from the consuming countries of the world. A system of accurate weighing, sampling and assaying of concentrates delivered to the smelters' premises enables the various ore-buying agencies of the two smelters to notify their central offices promptly of the estimated tin content of the concentrates their customers wish to price that day, so that by 11.00 a.m. both smelters will have exchanged with each other figures giving the total quantity of metal they have for inclusion in the day's market, at the same time exchanging particulars of the bids they have received. Miners are encouraged to sell regularly for cash and an evenness is thus achieved which avoids large daily fluctuations in overall quantity.