Japan has proposed to purchase billions of US dollars' worth of US semiconductor products. The SHFE tin price remained in the doldrums during the night session [SMM Tin Morning News]

SMM Tin Morning News on May 28, 2025:

Futures Market: The most-traded SHFE tin contract (SN2507) remained in the doldrums during the night session, with the price midpoint dropping slightly to around 264,000 yuan/mt, down 0.41% from the previous trading day.

Macro: (1) Japan has proposed purchasing billions of US dollars' worth of US semiconductor products. The Japanese government will offer subsidies to domestic companies acquiring chips from firms such as NVIDIA (NVDA.O) to support chip purchases totaling hundreds of billions to 1 trillion yen. (Bullish ★) (2) National Bureau of Statistics (NBS): From January to April, industrial enterprises above designated size nationwide achieved a total profit of 2.11702 trillion yuan, up 1.4% YoY. (Bullish ★) (3) BOE Technology Group's 6th-generation new-type semiconductor display production line has entered full-scale mass production in Beijing. This marks another breakthrough for China in the high-end display sector, injecting strong momentum into the development of the semiconductor display industry. (Bullish ★) (4) Tariff Situation: ① Trump expressed great satisfaction with imposing a 50% tariff on the EU, and the EU has called for an early negotiation date. ② Hassett: US tariffs on certain countries may be reduced to 10% or lower. The tariff reduction will apply to countries that offer favorable conditions. ③ European Council: EU countries have agreed to exempt most enterprises from carbon border tariffs. ④ Brazil extends the duration and expands the scope of trade protection measures for the steel industry. (Neutral)

Fundamentals: (1) Supply-side Disruptions: Overall tin ore supply in major producing regions such as Yunnan has tightened. Subsequently, some smelters may halt production for maintenance to address the shortage of raw materials. (Bullish ★) (2) Demand Side: After the Labour Day holiday, some downstream processing enterprises have gradually resumed operations, and there has been some release of restocking demand at lower prices. However, transactions at higher prices remain sluggish. (Bearish ★)

Spot Market: Trading in the spot market remained sluggish yesterday, primarily due to high prices suppressing demand, weak terminal orders, and a wait-and-see sentiment in the market. Traders' shipments were generally low, with most transactions conducted at forward pricing.