Trump Eases Auto Tariff Policy to Mitigate Impact on Domestic Automakers; Domestic Spot Market Transactions Sluggish [[SMM Morning Tin News]]

SMM Morning Tin News on April 30, 2025:

Futures Market: The most-traded SHFE tin contract (SN2506) exhibited a weak and volatile trend during the night session. It eventually closed at 261,110 yuan/mt, down slightly by 0.04% from the settlement price of the previous trading day. This trend continued the fluctuating pattern observed during the daytime session. Open interest decreased by 431 lots during the day, with total open interest reaching 30,300 lots.

Macro: (1) Tariffs - ① Trump eased auto tariff policies to mitigate the impact on domestic automakers. ② US Secretary of Commerce: A trade agreement has been reached with an unnamed country. ③ Informed sources: Trump plans to use AI chips as a new bargaining chip in trade negotiations. ④ US media: The US side stated that Europe has not been actively participating in tariff issues. ⑤ Walmart notified Chinese suppliers to resume shipments. (Bullish ★) (2) The probability of the US Fed maintaining interest rates unchanged in May is 92.3%. (3) The US battery industry announced plans to invest 100 billion US dollars to establish a domestic supply chain. (Bullish ★)

Fundamentals: (1) Supply-side disruptions: The Bisie tin mine in the Democratic Republic of the Congo (DRC) is resuming production in phases, with daily average production recovering to 60%-70% of normal levels. The ore supply tightness has only marginally eased. (Bullish ★) (2) Demand side: Traditional solder exports are being suppressed by the 245% US tariff. (Bearish ★)

Spot Market: Trading in the spot market was sluggish yesterday, with most downstream and end-user enterprises adopting a wait-and-see attitude. Only a small number of enterprises made just-in-time procurement, leading to a decline in spot market trading volume.