State-owned Assets Supervision and Administration Commission of the State Council: Effectively Optimize the Layout of Strategic Emerging Industries and Future Industries, SHFE Tin Prices Remain High and Range-bound [SMM Tin Morning News]

SMM Morning Tin News on May 13, 2025:

Futures Market: The most-traded SHFE tin contract (SN2506) opened higher and remained steady during the night session. After a slight high open, it maintained high-level consolidation and closed at 264,570 yuan/mt, up 1.33% from the previous trading day, with total open interest reaching 35,000 lots.

Macro: (1) SASAC: Effectively optimize the layout of strategic emerging industries and future-oriented industries, and accelerate breakthroughs in key core technologies (bullish ★). (2) Goldman Sachs pushes back expectations for US Fed interest rate cut to year-end, lowers the possibility of a US recession (bullish ★). (3) US tariff revenue surged 130% YoY to $16 billion in April (bullish ★). (4) AI startup Perplexity's valuation soars to $14 billion. The AI search startup Perplexity is in talks for a new funding round at a $14 billion valuation, a significant increase from the previous round but below the initial target. Last year, Perplexity's valuation increased from $1 billion to $3 billion and then tripled a few months later (bullish ★).

Fundamentals: (1) Supply-side disruptions: Production resumptions are underway in the Wa region of Myanmar, with ore supply tightness only marginally easing (bullish ★). (2) Demand side: After the Labour Day holiday, some downstream processing enterprises gradually resumed operations, and there was some release of low-price restocking demand, but high-price transactions remained sluggish. Solder enterprises have stable orders but no significant increase. The US's electronic tariff policy on China is suppressing downstream restocking expectations (bullish ★).

Spot Market: Trading in the spot market was relatively mediocre yesterday, with most traders reporting transactions of less than one truckload. A few enterprises closed deals when prices fell in the morning, but most downstream and end-user enterprises maintained just-in-time procurement.