UK and US Reach Trade Deal: Retain 10% Benchmark Tariffs on UK; SHFE Tin Prices Fluctuate Rangebound [SMM Tin Morning News]

SMM Tin Morning News on May 9, 2025:

Futures Market: The most-traded SHFE tin contract (SN2506) fluctuated rangebound during the night session. It closed at 261,450 yuan/mt during the night session, up 0.3% from the previous trading day, with total open interest reaching 29,200 lots.

Macro: (1) National Development and Reform Commission (NDRC): It is refining a long-term mechanism for private enterprises to participate in major national projects. This year, it will also launch high-quality projects with a total investment scale of approximately 3 trillion yuan. (Bullish ★) (2) Huawei's HarmonyOS-powered computer makes its debut, marking a breakthrough for domestic PC operating systems. (Bullish ★) (3) Tariffs - ① UK-US Trade Agreement: The US will retain a 10% base tariff on the UK, expand market access for both sides, eliminate tariffs on UK steel and aluminum, implement zero tariffs on US agricultural products imported by the UK, and apply a tiered tariff system for UK car imports. ② US Trade Representative: Enforcement actions on imported services may be necessary. ③ Trump: The UK has agreed to a procurement deal worth $10 billion for Boeing aircraft. ④ US Commerce Secretary: Focus is on the next major power, with hopes of reaching a trade agreement with a major Asian country. ⑤ If negotiations falter, the EU plans to impose additional tariffs on US products worth 95 billion euros. ⑥ Indian Official: A free trade agreement with the UK will be signed in three months.

Fundamentals: (1) Supply-side Disruptions: Production resumptions are underway in the Wa region of Myanmar, with ore supply tightness only marginally easing. (Bullish ★) (2) Demand Side: Solder companies have seen relatively stable orders after the holiday, with no significant increase yet.

Spot Market: Trading in the spot market remained sluggish yesterday, with most traders reporting single-digit transaction volumes and low customer inquiry and purchase intentions. The vast majority of downstream and end-user enterprises, affected by the price rally, have temporarily shelved their procurement plans, with only a few maintaining just-in-time procurement.