Last Week Tin Prices Retreated from Highs, Stimulating End-User Enterprises' Stockpiling Willingness [SMM Tin Morning Brief]

SMM Tin Morning Brief, May 6, 2026:

Macro: (1) As demand for chips surged in the artificial intelligence sector, Samsung Electronics, the world's largest memory manufacturer, saw its stock price more than triple over the past year, with its market capitalization surpassing $1 trillion. Early in Wednesday's trading session, Samsung Electronics' stock price surged as much as 11%, making it the second Asian enterprise after TSMC to reach the trillion-dollar milestone. Dave Mazza, CEO of Roundhill Investments, stated: "The trillion-dollar threshold carries practical significance beyond symbolism. On a broader level, it reflects the market's judgment on the role of memory functionality within AI infrastructure architecture — that its role is structural rather than cyclical." (2) The fourth EU-Japan Digital Partnership Council meeting was held in Brussels on May 5. The European Commission stated that it would further deepen regulatory, scientific research, and industrial cooperation with Japan in areas such as data, artificial intelligence, quantum technology, digital infrastructure, and online platforms. According to the communiqué, the cooperation intentions reached by both sides cover multiple key areas including data governance, artificial intelligence, and quantum technology. On data governance, the EU plans to jointly establish a "Data Strategy Working Group" with Japan to enhance data sharing, and promote joint R&D and innovation. Meanwhile, the EU welcomed Japan's participation in the EU's flagship science program "Horizon Europe," believing this would accelerate joint scientific research in digital fields such as artificial intelligence. The communiqué stated that both sides will launch joint research projects in quantum science and technology to advance the development of hybrid computing environments and explore applications of quantum technology in materials science, CO2 emission reduction, communication networks, fluid dynamics, and satellite image analysis.

Fundamentals: (1) Supply side: In April, most smelters focused on stable production as their main priority. (2) Demand side: Downstream procurement remained cautious, with purchases made according to order conditions.

Spot market: Last week, tin prices retreated from highs, stimulating end-users' willingness to stockpile. Some downstream enterprises bought the dip, replenishing previously depleted inventory and driving the destocking of social inventory.

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