Powell Reiterates No Need to Rush Rate Adjustments; End-Users Gradually Conclude Chinese New Year Holiday [SMM Tin Morning News]

Powell Reiterates No Urgency to Adjust Interest Rates; End-User Enterprises Gradually Conclude Chinese New Year Holiday [SMM Tin Morning Brief] February 13, 2025, SMM Tin Morning Brief: Fed Chairman Powell stated that the US monetary policy actions adhere to a dual mandate, namely maximizing employment and stabilizing prices. The Federal Open Market Committee (FOMC) maintained the federal funds rate target range at 5.25% to 5.5% for 14 months before lowering the policy rate by a full percentage point since last September. Considering the progress in inflation and the cooling of the labour market, this policy adjustment is deemed appropriate. Meanwhile, we continue to reduce the US Fed's holdings of securities. In the futures market, during yesterday's daytime session, SHFE tin prices fluctuated downward. By the close of the daytime session, the price of the most-traded SHFE tin contract stabilized at around 257,000 yuan/mt. During the night session, SHFE tin prices opened significantly higher and maintained a high-level consolidation before adjusting to around 259,500 yuan/mt by the close. The overall open interest of SHFE tin contracts rebounded, reflecting increased market participation. In the spot market, activity remained relatively subdued. However, considering that the Lantern Festival has passed, most end-user enterprises have concluded the Chinese New Year holiday and fully resumed operations. This is expected to boost downstream demand for tin ingots, thereby driving spot market transactions.