Daytime session sees narrowed price fluctuations and pullback, while spot market remains sluggish in overall trading volume [SMM Tin Midday Review]

Midday Commentary on the Most-Traded SHFE Tin Contract on May 27, 2025

​​This morning, the most-traded SHFE tin contract (SN2506) fluctuated downward slightly. It opened at 264,870 yuan/mt, up 0.31% from yesterday's closing price of 264,050 yuan/mt. The morning session saw narrower price fluctuations, with a high of 266,400 yuan/mt and a low of 264,300 yuan/mt. It closed at 264,600 yuan/mt at midday, up slightly by 0.06%. Market trading remained sluggish, with open interest decreasing slightly to 13,300 lots.

Rising Trade Frictions​​: The Trump administration threatened to impose a 50% tariff on the EU starting June 1. The expectation of rising global trade costs has suppressed risk appetite, with the VIX index climbing to a high level. Capital has accelerated its flow into safe-haven assets such as gold and U.S. Treasuries.

​​Domestic Policy Countermeasures​​: There is a resonance between green transformation and financial support policies. RRR cuts by the PBOC have released 1 trillion yuan in liquidity. Coupled with the extension of PV installation subsidies, the logic of long-term demand growth remains unchanged.

​​The most-traded SHFE tin contract is expected to maintain sideways movement within the range of 260,000-268,000 yuan/mt. Downside support comes from the low operating rate of smelters in Yunnan and the low inventory levels at the LME. Upside pressure stems from the expectation of production resumptions at the Bisie mine in the DRC and macro risk-averse sentiment.

​​Spot Market: Trading in the spot market remained relatively sluggish this morning. Some traders reported only a few orders were placed in the morning, with scattered transactions. The purchasing sentiment of downstream and end-user enterprises was low.