The price of SHFE tin maintained a sideways movement, and the spot market saw sluggish trading. [SMM Tin Futures Review]

March 27, 2025 Daily Commentary on the Most-Traded SHFE Tin Contract The most-traded SHFE tin contract (SN2505) showed a fluctuating rebound today. It opened lower at 278,500 yuan/mt in the morning session due to the pullback in US stocks and the impact of US tariff policies. However, it gradually rebounded with the support of macro policy adjustments and supply-demand imbalances, eventually closing at 281,390 yuan/mt, up 0.82% from the previous day. The intraday fluctuation range was 278,000-281,900 yuan/mt, and the trading volume increased by 18% to 32.89 billion yuan. LME tin prices also strengthened, closing at $35,000/mt, up 0.84%, indicating enhanced linkage between domestic and overseas markets. Domestic policy support intensified: The Ministry of Finance expanded the coverage of the trade-in policy, boosting demand for solder in the new energy vehicle and smart home sectors. The central bank's MLF operations injected liquidity, easing the pressure from local government bond issuance, but the risk of idle funds still constrained market confidence. No hope for the resumption of the Bisie mine in the DRC: The world's third-largest tin mine, controlled by the M23 armed group, remains shut down. The deepening military cooperation between the DRC government and the US has hindered the repair of the supply chain, exacerbating the risk of raw material shortages. Inventory pressure persists: SHFE warrants increased to 8,622 mt, but domestic social inventories remain high, with destocking speed lagging behind historical levels, and spot discounts have widened. In the short term, SHFE tin is expected to continue fluctuating within the range of 278,000-285,000 yuan/mt.