Some smelters have initiated maintenance or implemented production cuts in a phased manner. SHFE tin prices may continue to fluctuate considerably in the afternoon [SMM Tin Midday Review].

Lunchtime Commentary on the Most-Traded SHFE Tin Contract on June 13, 2025

Today, the most-traded SHFE tin contract (SN2507) opened at 265,270 yuan/mt in the morning session, slightly higher than yesterday's closing price. It slipped slightly before the close to 263,800 yuan/mt. By midday, the price closed at 263,890 yuan/mt. Market sentiment was cautious, with sluggish spot transactions. Traders primarily engaged in just-in-time procurement.

Tight Supply of Tin Ore: The ban on transporting tin ore from southern Myanmar via Thailand continues to have an impact. Domestic tin ore imports in June are expected to decrease by 500-1,000 mt (metal content), exacerbating pressure on the raw material side. Smelters in major production areas such as Yunnan and Jiangxi are maintaining low operating rates (approximately 54% in total) due to insufficient raw material inventories (generally below 30 days) and low TCs. Some enterprises have initiated maintenance or gradual production cuts.

Weakening Export Orders: Overseas demand has been dragged down by the slowdown in global economic growth, with MoM declines in solder and electronic component exports, further weakening demand support.

Spot Market Dynamics

Smelters have a strong reluctance to budge on prices, but high prices have suppressed transactions. Traders reported that the market is dominated by small just-in-time orders, with overall sluggish transactions.