The most-traded SHFE tin contract remains rangebound at a high level, with the spot market continuing to exhibit a sluggish pattern [SMM Tin Midday Review]

Lunchtime Commentary on the Most-Traded SHFE Tin Contract (SN2506)

Today, the most-traded SHFE tin contract (SN2506) maintained a high-level consolidation pattern. It opened at 265,000 yuan/mt in the morning session, with prices holding steady at a high level. By midday, it closed at 264,830 yuan/mt, up 0.57% from yesterday, while open interest decreased to 30,600 lots.

The US-China tariff reduction agreement continues to unfold, with the market anticipating improved downstream export demand in sectors such as electronics and new energy, supporting the risk premium of tin prices. US Fed officials signaled that "interest rate cuts are still possible this year," causing the US dollar index to drop back slightly. However, the market remains cautious in its bets on liquidity easing, with macro drivers weakening at the margin.

The spot market continues to exhibit sluggish conditions, with tin ingot transaction prices in the Shanghai area fluctuating around 264,000 yuan/mt. The liquidity of high-priced resources is insufficient, and downstream demand remains limited to just-in-time procurement.

The US policy of imposing tariffs on Chinese electronic components has not been fully lifted, and solder companies have not seen a significant increase in orders. End-use consumption lacks explosive drivers.