SHFE Tin Contract Fell Over 7% Today, Macro Ebb and Holiday Impact Limited Overall Demand Recovery [SMM Tin Midday Review]

On February 5, 2026, the most-traded SHFE tin contract, sn2603, experienced a wide decline after fluctuating in the morning, and closed at 365,070 yuan/mt at the midday break, down 7.03%. On the LME, the three-month tin contract also fell, temporarily quoted at $45,855/mt, down 5.18%.

Fundamentally, market sentiment remained tense as prices fluctuated at highs earlier; the sharp pullback at the start of the week stimulated trading interest, leading to a recovery in market activity, primarily driven by orders and inventory management. However, with high market volatility and unclear guidance, downstream enterprises mostly followed up with small, batched orders. Additionally, as the Chinese New Year holiday approaches, most downstream enterprises have already entered their holiday period early, resulting in a slowdown in overall production and procurement pace, and limited recovery in demand.

Overall, the previous price increase driven by macro sentiment has significantly deviated from fundamental support. As macro drivers weaken, the nonferrous metals sector is generally under pressure for a pullback. Against the backdrop of weak demand and a lack of fundamental support, tin prices are expected to remain relatively weak in the short term.