The most-traded SHFE tin contract consolidated at highs in the night session, downstream enterprises maintained just-in-time small-quantity purchases [SMM Tin Morning Brief]

SMM Tin Morning Brief on June 16, 2026:

Futures: The most-traded SHFE tin contract consolidated at highs during the night session, closing at 424,120 yuan/mt, up 1.52%.

Macro: (1) Tungsten hexafluoride is a key deposition material in the manufacturing of memory chips and advanced logic chips, and a popular product in this cycle of booming demand for electronic specialty gases. Affected by capacity exits outside China and continuous capacity expansion of downstream memory chips, the supply-demand gap has widened, directly pushing product prices into an upward channel. An analyst stated: "Taking tungsten hexafluoride, which has seen significant market price gains, as an example, the average monthly price for the 5N grade in June is expected to reach 1,760 yuan/kg, up 236% YoY. The growing demand for memory chips is the core underlying support." The head of a specialty gas producer in Shanghai stated that demand for helium has surged recently, and the factory is running two shifts but production is still undersupplied. The head explained: "The semiconductor industry has a very large demand for helium. Many clients are inquiring, and prices change daily. It is possible that the price today won't be available tomorrow." (2) As the AI industry's prosperity continues to rise, demand for AI chips and high-end memory chips is robust. The production of these chips cannot do without a special consumable — electronic specialty gases. Electronic specialty gases, which are electronic-grade gases with a purity exceeding 99.99%, are core materials in the field of electronic chemicals and are also known as the lifeblood of the semiconductor industry. Driven by robust downstream demand, various core products in the electronic specialty gas market are currently in undersupply. Heads of various specialty gas producers stated that orders on hand have surged, and production lines are running at high capacity. Company heads indicated that the final destinations of these products are mostly semiconductor wafer fabs. Since some electronic specialty gases are flammable, explosive, and hazardous chemicals, clients usually maintain zero inventory. According to company heads, since the beginning of this year, semiconductor wafer manufacturers' demand for electronic specialty gas transportation has seen explosive growth, nearly bringing the companies' distribution pace to full capacity.

Fundamentals: (1) Supply side: In June, most smelters focused on maintaining stable production. (2) Demand side: Downstream purchases were cautious, based on order status.

Spot Market: Small-lot purchases for essential demand persisted, while speculative buying almost disappeared, leaving the market in a "price without volume" state. Last week, when prices pulled back to the 395,000-400,000 yuan/mt range, downstream willingness to take on essential demand increased significantly, and inquiries and pricing transactions became more active, indicating that current price support remains but upward movement lacks continuous buying power.

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