SMM Tin Morning Briefing, March 25, 2026:
Futures: The most-traded SHFE tin contract opened slightly lower in the night session and then fluctuated upward to rebound, closing at 348,620 yuan/mt, up 0.81%.
Macro: (1) The Shenzhen Municipal Bureau of Industry and Information Technology recently issued the Action Plan of Shenzhen for Accelerating the High-Quality Development of the Artificial Intelligence Server Industry Chain (2026-2028). The plan proposed support for the accelerated application and iteration of domestically produced core chip products such as GPUs, NPUs, CPUs, and DPUs, the formation of a complete industrial ecosystem, encouragement for the R&D and industrialisation of high-performance computing chips based on the RISC-V architecture, development of high-speed Ethernet switch chips and PCIe/CXL switch chips, and promotion of technology iteration and performance upgrades. It also supported the R&D and application of third-generation semiconductor power devices, the development of scenario-specific dedicated power supply solutions, and forward-looking deployment in next-generation power semiconductor technologies. (2) Arm (ARM.O), known for licensing technology to semiconductor manufacturers, said it would begin selling its own chips for the first time, aiming to capture a larger share of the massive spending on artificial intelligence devices. At an event in San Francisco on Tuesday, Arm said Meta would become the major client for its first chip, the AGI CPU. Arm said the product would have up to 136 cores, a measure of processing capability, and power consumption of 300 watts. TSMC will manufacture these chips. After the news was announced, Arm's US-listed shares once surged to an intraday high.
Fundamentals: (1) Supply side: In March, most smelters gradually resumed production and work, ending their holiday status. (2) Demand side: Downstream procurement remained cautious. Downstream enterprises gradually began to resume production and work, but orders were relatively mediocre.
Spot market: Transactions in the spot market gradually cooled. As tin prices pulled back yesterday, most downstream enterprises began to adopt a wait-and-see attitude, and the procurement pace started to slow down. The vast majority of smelters maintained high prices with low willingness to sell, while traders' quotations also remained at high levels.
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