The most-traded SHFE tin contract maintains a fluctuating rangebound trend, while downstream processing enterprises only make just-in-time procurement [SMM Tin Midday Review]

Lunchtime Commentary on the Most-Traded SHFE Tin Contract on May 22, 2025

​​This morning, the most-traded SHFE tin contract (SN2506) maintained a fluctuating rangebound trend, reaching a high of 267,600 yuan/mt and a low of 264,600 yuan/mt during the session. It closed at 265,310 yuan/mt at midday, dropping slightly by approximately 0.67% from yesterday's settlement price. Market trading was generally sluggish, with open interest decreasing to 24,300 lots from yesterday, as bulls and bears engaged in a tug-of-war near the 265,000 yuan/mt level.​​

​​Updates on Production Resumptions in Myanmar's Wa Region​​: The policy to resume tin ore production in Myanmar's Wa Region continues to advance, but exports have not yet rebounded significantly. In the short term, the ore supply will remain in a tight balance.

​​Sluggish Trading in the Spot Market​​: Traders generally reported that with tin prices currently at high levels, downstream processing enterprises are only making just-in-time procurement, with some choosing to purchase at a later fixed price. Actual transactions in east China were concentrated in the range of 265,000-265,500 yuan/mt, with insufficient liquidity for high-priced resources.

​​Drag from End-Use Industries​​: Industries such as electronics and home appliances have been suppressed by the Sino-US tariff policies, resulting in weak restocking sentiment. Although demand for PV welding strips has been steadily increasing, the growth is not enough to offset the weakness in traditional sectors.

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