The U.S. has adjusted the tariff hikes on China, and SHFE tin prices remain high and range-bound [SMM Tin Morning News]

SMM Tin Morning News on May 15, 2025:

Futures Market: The most-traded SHFE tin contract (SN2506) opened slightly higher during the night session and maintained high-level consolidation, closing at 265,480 yuan/mt, up 0.32% from the previous trading day. Total open interest reached 29,300 lots.

Macro: (1) Tesla's Shanghai Gigafactory exported nearly 30,000 Model 3/Y vehicles in April, hitting a new high in nearly a year. (Bullish ★) (2) India approved the establishment of a Foxconn semiconductor joint venture. (Bullish ★) (3) The US adjusted tariffs imposed on China at 00:01 AM EST on May 14. (Bullish ★) (4) Tariffs - ① Sources: The US trade tariff agreements with Japan, South Korea, and India are "close to being finalized." ② Sources: The US is not seeking a depreciation of the US dollar in tariff negotiations. ③ The EU is preparing to impose higher tariffs on Ukrainian imports within weeks. ④ US media: Trump rewrote trade rules over 50 times in 100 days.

Fundamentals: (1) Supply-side disruptions: Alphamin Resources Corp.'s Bisie tin mine produced 1,290 mt of metal tin from April 15 to May 11, 2025, achieving the expected processing recovery rate. Tin production commenced by processing raw ore stockpiles from the mine, initially from the Mpama North plant, followed by the restart of the Mpama South plant on April 19, 2025. Blasting and transportation of underground ore began in the last week of April 2025, while the mine development rate also increased. The first batch of fully documented and approved tin concentrates for export was dispatched by truck on May 9, 2025, since the restart of the mine. (Bullish ★) (2) Demand side: Some downstream processing enterprises gradually resumed operations after the Labour Day holiday, with some release of low-price restocking demand, but high-price transactions remained sluggish.

Spot Market: The transaction price of tin ingots fluctuated around 264,000 yuan/mt. High-price resources lacked liquidity, and downstream enterprises only maintained just-in-time procurement. Solder enterprises had stable orders but no significant increase, with the electronics and home appliance industries' restocking willingness suppressed by tariff policies.