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

[SMM Tin Midday Review: Demand for Restocking at Lower Prices Released After Labour Day Holiday, SHFE Tin Price Maintained at 260,000 yuan/mt] This morning, the most-traded SHFE tin contract (SN2506) opened at 261,950 yuan/mt, slightly higher than the settlement price of the previous trading day (260,970 yuan/mt). The price fluctuated upward during the session, reaching a high of 264,000 yuan/mt, and closed at 260,560 yuan/mt at midday, with an intraday gain of 0.09%. Open interest increased by 2,529 lots, and market trading sentiment leaned towards caution.

He Lifeng to Visit Switzerland and France, Hold High-Level Sino-US Economic and Trade Talks, and the 10th China-France High-Level Economic and Financial Dialogue SHFE Tin Prices Fluctuate Rangebound [SMM Tin Morning News] Futures Market: The most-traded SHFE tin contract (SN2506) exhibited a rangebound fluctuation trend. It closed at 262,000 yuan/mt during the night session, up 0.73% from the previous trading day, with total open interest reaching 29,000 lots. Market trading was relatively cautious. Macro: (1) He Lifeng will visit Switzerland and France, and hold high-level Sino-US economic and trade talks, as well as the 10th China-France High-Level Economic and Financial Dialogue. During his visit to Switzerland, as the Chinese lead negotiator for Sino-US economic and trade affairs, Vice Premier He Lifeng will hold talks with the US lead negotiator, US Treasury Secretary Bessent. (Bullish ★) (2) The State Council Information Office held a press conference at 9 a.m. today. Departments such as the People's Bank of China and the China Securities Regulatory Commission will make statements and introduce the relevant situation of "a package of financial policies to support market stability and expectation stability." (Bullish ★) (3) Tariffs - ① It is reported that if negotiations fail, the EU will impose tariffs on US goods worth 100 billion euros. ② The UK and India have reached a free trade agreement. ③ UK media: The UK and the US are expected to reach a trade agreement this week, proposing to reduce tariffs on automobiles and steel. ④ Trump: The US-Mexico-Canada Agreement (USMCA) may be renegotiated.

[SMM Tin Futures Brief Commentary: SHFE and LME tin markets show significant divergence in trends, with sluggish trading in the domestic spot market] The most-traded SHFE tin contract (SN2506) exhibited a weak and volatile trend during the day. It briefly surged to 262,000 yuan/mt in the morning session but pulled back in the afternoon due to macro headwinds, eventually closing at 260,970 yuan/mt, down 0.32% from the previous trading day. LME tin, on the other hand, rose 2.66% to $31,700/mt during the day, influenced by disruptions in overseas supply, indicating a significant divergence in trends between SHFE and LME. The US Department of Commerce signaled a "phased adjustment of certain tariffs," but the risk of tariff increases in key areas such as AI chips and consumer electronics remains unresolved. As a core raw material for electronic solder, tin's downstream export demand (e.g., semiconductor packaging, consumer electronics) is directly suppressed by the uncertainty of tariff policies. The market is concerned that if the US further expands the scope of tariff increases, China's tin solder exports may face dual pressures of rising costs and order losses, leading to weaker-than-expected restocking demand after the holiday...

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 6 May, 2025

[SMM Tin Midday Review: Post-Holiday Restocking Sentiment Heats Up, SHFE Tin Prices Rebound Slightly] As of the midday close today, the most-traded SHFE tin contract SN2506 closed at 261,960 yuan/mt, up 0.06% from yesterday's settlement price, with an intraday fluctuation range of 257,800-262,000 yuan/mt. Trading volume and open interest decreased slightly, with market sentiment remaining cautious. The most-traded LME tin contract was temporarily quoted at $31,850/mt, up 3.14%. Fluctuating tariff policies: The US Department of Commerce signaled "potential partial or phased adjustments to tariffs," but the risk of tariff increases in areas such as AI chips and consumer electronics remains unresolved, with ongoing market concerns about the demand for tin's downstream exports.