Some traders have depleted their inventory, and SHFE tin prices continue to fluctuate upward. [SMM Tin Morning News]

SMM Morning Tin News on June 5, 2025:

Futures Market: The most-traded SHFE tin contract (SN2507) maintained an upward trend during the night session, closing near 263,000 yuan/mt, up 1.5% from the previous day.

Macro: (1) Content of the phone call between Chinese and US heads of state: Both sides should make good use of the established economic and trade consultation mechanisms to achieve win-win results; the US will continue to adhere to the one-China policy. (Bullish ★) (2) Musk stated that Tesla (TSLA.O)'s Dojo AI training computer is making progress. We will launch the next-generation AI supercomputer, Dojo 2, later this year. (Bullish ★) (3) Tariffs - ① Japanese media: The US has shown flexibility in reducing additional reciprocal tariffs on Japan. ② Sources: US and Indian negotiators may finalise tariff reductions and market access issues, reaching a provisional agreement. ③ Trump: A good trade deal will be reached with Germany. (Neutral)

Fundamentals: (1) Supply-side disruptions: The overall supply of tin ore in major producing regions such as Yunnan has tightened. As June approaches, some smelters are considering halting production for maintenance or slightly cutting production. (Bullish ★) (2) Demand side: Recently, as tin prices hit bottom at 250,000 yuan/mt, orders from most downstream enterprises have picked up, and purchase willingness has increased. (Bullish ★)

Spot Market: As prices climb, downstream enterprises' willingness to restock on dips has decreased. Some end-users are making just-in-time procurement, and market purchase enthusiasm has gradually declined, with spot market transactions falling short of previous periods.