The state increases investment to support long-term data infrastructure construction. SHFE tin prices weaken before the holiday. [[SMM Tin Morning News]]

SMM Tin Morning News on May 6, 2025:

Futures Market: The most-traded SHFE tin contract (SN2506) exhibited a weak and volatile trend. It eventually closed at 260,000 yuan/mt before the holiday, continuing the fluctuating pattern observed during the daytime session, with total open interest reaching 30,600 lots.

Macro: (1) The state is increasing investment to support the long-term construction of data infrastructure. (Bullish ★) (2) Tariffs - ① It is reported that India has proposed implementing reciprocal zero tariffs on a certain quantity of US automotive parts and steel. ② Informed sources: The US has rejected Japan's request for a comprehensive exemption from the 10% reciprocal tariff. ③ The White House stated that no final decision has been made regarding film tariffs. ④ Trump: Tariff measures on pharmaceutical products will be announced within the next two weeks. (Bullish ★) (3) The DRC government and rebel forces have initiated a new round of dialogue. (Bullish ★)

Fundamentals: (1) Supply-side disruptions: Production resumptions are underway in the Wa region of Myanmar, with the ore supply tightness only marginally easing. (Bullish ★) (2) Demand side: Solder companies received relatively scattered orders before the holiday, which were less robust than in previous periods. (Bearish ★)

Spot Market: Trading in the spot market was sluggish before the holiday, with most downstream and end-user companies adopting a wait-and-see attitude. There was low sentiment for restocking before the holiday, leading to a decline in spot market trading volume.