The spot market continues to exhibit a pattern of "high premium and low trading volume," with downstream enterprises only maintaining just-in-time procurement [SMM Tin Midday Review]

Lunchtime Commentary on the Most-Traded SHFE Tin Contract on May 21, 2025

In the morning session today, the most-traded SHFE tin contract (SN2506) continued its recent pattern of fluctuating at highs, closing around 267,900 yuan/mt at midday, with an intraday gain exceeding 1%. This trend is linked to the catch-up rally in LME tin overnight and the escalation of geopolitical risk aversion sentiment.

The spot market maintained its pattern of "high premiums and low trading volumes," with SMM 1# tin ingot spot quotes ranging from 267,400 to 269,400 yuan/mt. However, high prices have curbed downstream restocking intentions, and orders from end-users in electronics, home appliances, and other sectors have not seen significant growth. Solder companies are only making just-in-time procurement. There is still potential demand in the new energy and AI computing power sectors (e.g., tin for PV welding strips and AI server chips), but in the short term, actual consumption growth has yet to materialize due to the suppression of high tin prices.

In the afternoon session, futures prices may continue to fluctuate at highs, with resistance above at 269,000 yuan/mt (near the 60-day moving average) and support below at 263,000 yuan/mt.