Rate Hike Expectations and Tech Stock Decline Outside China, Most-Traded SHFE Tin Contract Continues to Fall [SMM Tin Midday Review]

Jun 3, 2026 Tin Midday Review

This morning, the tin market center shifted notably lower. The most-traded SHFE tin contract opened at 413,110 yuan/mt, dipped to a low of 396,890 yuan/mt, and closed the morning session at 401,270 yuan/mt, down 5.97%. On the LME, the center of three-month tin futures edged higher after the Chinese morning close, currently quoted at $52,895/mt, down 0.55%.

On the macro front:

(1) Israel launched airstrikes on Hezbollah targets in Lebanon. That night, Iran retaliated by firing missiles at Israeli territory. Trump asked Israel to delay retaliation, stating that the US and Iran were about to reach an agreement. Although Israel reluctantly agreed not to carry out retaliatory actions, on Jun 8, the Israeli military said its air force had struck Iranian regime military targets in western and central Iran.

(2) On Jun 5, major overseas stock indices closed lower across the board, with the three major US indexes posting significant declines: the Dow Jones Industrial Average fell 1.35%, the Nasdaq Composite dropped 4.18%, and the S&P 500 lost 2.64%. Among them, sectors across the entire industry chain highly related to AI, such as semiconductors, tumbled sharply. Several globally renowned leading AI-related chip companies and top semiconductor storage entities recorded one-day drops ranging from 6.2% to 16.7%.

In the spot market, as futures fell this morning and once dipped below 400,000 yuan/mt, purchase willingness, long suppressed by high prices, was partially released. Most traders reported that the inquiry and shipment atmosphere in the spot market was moderate this morning, with spot premium quotes for mainstream brands concentrated in the range of 500–1,000 yuan/mt, and did not see a notable pullback following the futures decline.

Overall, the recovery in spot trades may provide modest support for the price center going forward. The most-traded SHFE tin contract is expected to maintain a wild swing pattern in the near term. Continue to monitor the actual evolution of geopolitical conflicts outside China and shifts in macro sentiment amid liquidity expectations.