The Most-Traded SHFE Tin Contract Held Steady with Fluctuations in Night Session as Downstream and End-User Purchasing Sentiment Remained Subdued [SMM Tin Morning Brief]

SMM Tin Morning Brief, May 18, 2026:

Futures: The most-traded SHFE tin contract consolidated during the night session, closing at 409,300 yuan/mt, down 2.84%.

Macro: (1) On May 17, the 2026 World Telecommunication and Information Society Day Conference was held in Wuhan, Hubei. Chen Huaida, Deputy General Manager of China Mobile, introduced at the conference that looking ahead to the "15th Five-Year Plan" period, China Mobile will strengthen its large-scale network advantages, revitalize business segments including mobile communications, broadband networks, cellular IoT, and satellite interconnection, build premium communication networks, promote the evolution from "dual-gigabit" networks to "dual-10-gigabit" networks, intensify R&D efforts in key core technologies such as 5G-A, 6G, and satellite internet communication gateways, strengthen the security protection of critical information infrastructure, enhance the ability to prevent extreme risks, and accelerate the construction of next-generation information infrastructure that integrates communication, sensing, computing, and intelligence, covers space, sky, land, and sea, and is secure and controllable. (2) Yin Zhiyao, Chairman and General Manager of Advanced Micro-Fabrication Equipment Inc. China, known as the "Father of China's Etching Machines," stated that in December 2023, AMEC decided to enter the large flat-panel equipment field (where previously about 17 types of process equipment were entirely dependent on imports). Such equipment weighs 150 mt, measures 15 meters long and 15 meters wide, and stands two and a half stories tall. Based on Yin Zhiyao's experience, developing such equipment would take at least 3-7 years. However, AMEC's elite team produced a functional piece of equipment from scratch in just 12 months, met the client's next-generation requirements in less than 4 months, and delivered it to the production line and passed approval in 18 months. "We now have the capability to produce the most advanced equipment," he said.

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: Overall spot market transactions were notably suppressed by high prices, with downstream and end-user procurement sentiment remaining subdued and a wait-and-see attitude prevailing.

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