SHFE Tin Contract in the Doldrums on the Morning of the 28th, Downstream Enterprises Mainly Following Up on Rigid Demand [SMM Tin Midday Review]

SMM Tin Midday Review, May 28, 2026

This morning, the most-traded SHFE tin contract was in the doldrums, opening at 421,900 yuan/mt and closing the morning session at 420,230 yuan/mt. It hit an intraday low of 416,010 yuan/mt, with an overall decline of 1.05%. The LME center pulled back in tandem, with LME three-month tin temporarily quoted at $54,250/mt, down 0.55%.

On the macro front:

(1) US Fed Governor Lisa Cook stated that inflation was heading in the wrong direction and that she was prepared to raise interest rates if this trend persisted. Cook indicated that she was inclined to keep borrowing rates unchanged for the time being and expected the pace of price increases to slow down again in the coming months.

(2) According to reports, a "preliminary informal document" outlining the framework of a memorandum of understanding between Iran and the US was disclosed, covering issues including the Strait of Hormuz, regional military deployments, and future agreement arrangements. Per the document, the relevant parties committed to lifting restrictions on maritime passages and withdrawing some military forces; in exchange, Iran would gradually restore commercial vessel traffic through the Strait of Hormuz to pre-escalation levels within one month, excluding military vessels. The management and routing of vessel traffic would be jointly coordinated by Iran and Oman. If all parties reach a final agreement within 60 days, the relevant terms may be confirmed in the form of a binding international resolution. The relevant parties emphasized that no practical actions would be taken until substantive and verifiable inspections are completed.

Spot market, the pullback in the futures center slightly stimulated periodic demand. As the most-traded contract briefly slipped to around 416,000 yuan/mt during the morning session, some spot orders were triggered. However, the overall wait-and-see and restrained sentiment in the market had not fundamentally changed, with purchases mainly driven by rigid demand. Suppliers' offers remained relatively stable, and spot premiums for mainstream brands did not see wild swings.

Overall, the most-traded SHFE tin contract is expected to swing wildly in the short term. Close attention should be paid to the evolution of ex-China macro liquidity expectations and the substantive progress in the implementation of geopolitical agreements.