Market Concerns Over Supply Intensify, SHFE Tin Prices Rebound From Lows and Trend Upward [SMM Tin Morning Brief]

SMM Tin Morning Briefing on February 24, 2025: Last week, the SHFE tin futures market experienced a bottom-out and rebound trend. Initially, concerns over supply intensified due to news of disrupted tin ore supply from the DRC, causing SHFE tin prices to move downwards after a higher opening, eventually plunging to the level of 260,000 yuan/mt. Midweek, as the US dollar weakened and the US Fed paused interest rate cuts, SHFE tin prices fluctuated and consolidated around 262,000 yuan/mt. Near the weekend, as the anticipated resumption of production in Wa State, Myanmar, failed to materialize, concerns over a supply deficit grew. Coupled with a significant surge in the overseas market, SHFE tin prices rebounded to around 264,000 yuan/mt. However, trading in the spot market remained sluggish last week. Most downstream enterprises were reluctant to actively purchase and preferred to consume existing inventory. With tin prices remaining high, inquiries decreased, and market sentiment was cautious. Even though some enterprises restocked during price corrections, overall trading volume remained limited. Most traders settled transactions using the post-pricing method. Overall, the spot market's trading activity and most downstream enterprises' procurement strategies remained consistent with the previous week. Looking ahead, the SHFE tin market still faces uncertainties. Last week's prices rebounded from low levels, and in the short term, close attention should be paid to the progress of production resumption in Myanmar and changes in downstream orders for their further impact on prices.