UK and US Reach Trade Agreement: Retain 10% Base Tariff on UK Imports; SHFE Tin Prices Fluctuate Rangebound [SMM Tin Morning News] (1) NDRC: Currently Improving Long-Term Mechanism for Private Enterprises to Participate in National Major Projects; Will Launch High-Quality Projects with a Total Investment of Approximately RMB 3 Trillion This Year. (Bullish ★) (2) Huawei's HarmonyOS PC Makes Its Debut, Breaking Through in Domestic PC Operating Systems. (Bullish ★) (3) Tariffs - ① UK and US Reach Trade Agreement: Retain 10% Base Tariff on UK Imports, Expand Market Access for Both Sides, Eliminate Tariffs on UK Steel and Aluminum, Implement Zero Tariffs on US Agricultural Products, and Apply Tiered Tariffs on UK Automobile Imports; ② US Trade Representative: May Need to Take Enforcement Actions Against Imported Services; ③ Trump: UK Agrees to Purchase Agreement for Boeing Aircraft Worth $10 Billion; ④ US Commerce Secretary: Focusing on the Next Major Power, Hopes to Reach a Trade Agreement with a Major Asian Country; ⑤ If Negotiations Fail, EU Plans to Impose Additional Tariffs on US Products Worth €95 Billion; ⑥ Indian Official: Free Trade Agreement with the UK to Be Signed in Three Months.

[SMM Tin Futures Brief Commentary: US Dollar Index Fluctuates at Highs, Suppressing Non-Ferrous Metal Prices; SHFE Tin Prices Jump Initially and Then Pull Back] The most-traded SHFE tin contract (SN2506) jumped initially and then pulled back today. In the morning session, it surged to 262,000 yuan/mt, buoyed by expectations of RRR cuts and interest rate cuts by the PBOC and the US-China economic and trade talks. However, it pulled back in the afternoon session due to uncertainties surrounding US tariff policies and a stronger US dollar, eventually closing at 261,480 yuan/mt, down slightly by 0.16% from the previous trading day. Total open interest in the night session declined slightly to 31,000 lots. Concerns Over the US Economy: Q1 GDP contracted by 0.3% QoQ, core PCE inflation rose to 3.5%, consumer confidence fell to a record low, and the manufacturing PMI pulled back to 48.7, indicating intensifying downward pressure on the economy. The US Fed kept interest rates unchanged, pushing back interest rate cut expectations to July. The US dollar index fluctuated at highs, suppressing the non-ferrous metal sector. On the demand side, solder companies' post-holiday orders remained stable but without significant increases. The US's electronic tariff policies on China suppressed downstream restocking expectations. Trading in the spot market was mediocre, with traders reporting low inquiry willingness. Spot transaction prices ranged from 260,500 to 262,500 yuan/mt. However, smelters held onto their prices and were reluctant to sell, with downstream companies primarily making just-in-time procurement, and low-priced supplies were favoured...

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 8 May, 2025

[SMM Tin Midday Review: Trump May Announce a Trade Deal Between the US and the UK on Thursday; SHFE Tin Prices Fluctuate Upward] The most-traded SHFE tin contract (SN2506) fluctuated upward today. In the morning session, it continued to rise, buoyed by news that US President Trump was expected to announce a trade deal between the US and the UK on Thursday. It ultimately closed at 263,000 yuan/mt, up slightly by 0.42% from the previous trading day. Trading volume and open interest decreased slightly by 1,443 lots, with total open interest reaching 30,500 lots.

US Fed Maintains Interest Rates Unchanged for Third Consecutive Time; SHFE Tin Prices Open Lower and Continue to Decline in Night Session [[SMM Tin Morning News]] Macro: (1) "One Bank, One Bureau, One Commission" Makes Major Announcement, Releases Multiple Market-Stabilizing Measures Including RRR Cuts and Interest Rate Cuts. (Bullish ★) (2) The US Fed maintains interest rates unchanged for the third consecutive time, emphasizing in its statement the heightened risks of rising inflation and unemployment. Powell highlights the low cost of uncertainty and continued wait-and-see approach, indicating no rush to cut interest rates. Powell also states that he has no intention of proactively meeting with Trump, and that the latter's calls for interest rate cuts will not hinder the Fed's work. (Bullish ★) (3) Tariffs - ① The EU's trade chief indicates that the European Commission will announce preparations for the next round of countermeasures against US tariffs on Thursday. ② The EU states that it will impose tariffs on Boeing and US automobiles if trade negotiations fail. ③ The word "tariffs" was mentioned more than 20 times during Powell's press conference.

[SMM Tin Futures Brief Commentary: SHFE tin prices rose slightly, buoyed by expectations of RRR cuts and interest rate cuts by the PBOC and US-China economic and trade talks] The most-traded SHFE tin contract (SN2506) fluctuated considerably today. In the morning session, it surged to 262,000 yuan/mt, buoyed by expectations of RRR cuts and interest rate cuts by the PBOC and US-China economic and trade talks. However, it pulled back in the afternoon session due to uncertainties surrounding US tariff policies and a stronger US dollar. It ultimately closed at 261,230 yuan/mt, up slightly by 0.35% from the previous trading day. Trading volume and open interest increased slightly, and the tug-of-war between longs and shorts in the market intensified...

【SMM Tin Midday Review: SHFE Tin Prices Rise Slightly, Boosted by Anticipated RRR Cuts and Interest Rate Cuts by the PBOC and Sino-US Economic and Trade Talks】 The most-traded SHFE tin contract (SN2506) fluctuated considerably today. Boosted by anticipated RRR cuts and interest rate cuts by the PBOC and Sino-US economic and trade talks in the morning session, it surged to 262,000 yuan/mt at one point. However, it pulled back in the afternoon session due to uncertainties surrounding the US tariff policy and the strengthening of the US dollar, eventually closing at 261,230 yuan/mt, up slightly by 0.35% from the previous trading day. Trading volume and open interest increased slightly, and the tug-of-war between longs and shorts in the market intensified.​​Policy Support from China​​: The PBOC announced RRR cuts and interest rate cuts today and, in collaboration with financial regulatory authorities, introduced a "package of policies to stabilize the market and expectations," including measures to release liquidity and boost confidence in the capital market, providing short-term support for the valuation of industrial metals. In addition, Q1 GDP growth of 5.4% and the "trade-in" policy have driven a rebound in consumption, providing potential support for the demand for tin solder in downstream applications.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 7 May, 2025