The Most-Traded SHFE Tin Contract Continued Its Daytime Upward Trend in the Night Session, Spot Market Transactions Stagnated [SMM Tin Morning Brief]

SMM Tin Morning Brief, May 7, 2026:

Futures: The most-traded SHFE tin contract continued its daytime upward momentum during the night session, breaking through the 420,000 mark. It maintained a fluctuating trend in the later part of the session, closing at 425,160 yuan/mt, up 5.01%.

Macro: (1) Benefiting from tech companies' massive investment in AI computing, Arm (ARM.O) saw increasing adoption of its chip technology. The company on Wednesday forecast first fiscal quarter revenue of $1.26 billion, above market expectations of $1.25 billion. Arm CEO Rene Haas said: "We are very bullish on data center demand," adding that "data center-related royalties saw quite substantial growth" this quarter. Earlier this year, Arm launched the AGI CPU, a data center chip designed to handle the large-scale data computation required for specific types of AI. The company said on Wednesday that it had secured $2 billion in client demand for the processor for fiscal years 2027 and 2028. (2) Anthropic signed an agreement with Elon Musk's SpaceX to enhance its computing capacity and meet surging demand for its Claude AI software. The two companies said on Wednesday that Anthropic plans to obtain computing resources from a large SpaceX data center in Memphis called Colossus 1. Anthropic said the partnership would "significantly" increase its computing resources and enable it to raise usage limits on its AI products. Terms of the agreement were not disclosed. The move brings together two AI race rivals. While xAI lags behind in coding, it leads in data center and chip procurement. xAI had previously provided computing power to Cursor and was building data centers in Memphis and Mississippi. In a potential new branding move, xAI referred to itself as "SpaceXAI" when announcing the computing agreement.

Fundamentals: (1) Supply side: Most smelters focused on maintaining stable production in May. (2) Demand side: Downstream procurement remained cautious, with purchases made based on order conditions.

Spot market: On the first trading day after the holiday, spot market participants were generally in a wait-and-see mode. As futures prices rebounded quickly and rose back above 400,000 yuan, market transactions were significantly suppressed. Current market premiums remained at 1,300-2,000 yuan/mt.

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