Trump said that car tariffs may be raised in the near future, and the price of SHFE tin may continue to fluctuate [SMM Tin Morning News]

SMM Tin Morning News on June 16, 2025:

Futures Market: The most-traded SHFE tin contract (SN2507) fluctuated upward during the night session, closing at 265,580 yuan/mt, a 0.51% rebound from the previous day.

Macro: (1) The first stop of the 2025 NEV Rural Promotion Campaign, organized by five departments including the Ministry of Industry and Information Technology and the National Development and Reform Commission (NDRC), was launched in Rugao, Jiangsu today. A total of 124 NEV car models were selected for this year's campaign, surpassing the 99 models in 2024 and breaking the 100-model threshold for the first time. (Bullish ★) (2) According to a report on the German business daily Handelsblatt's website on June 13, Mark Papermaster, Chief Technology Officer of semiconductor manufacturer Advanced Micro Devices (AMD), criticized the US government's semiconductor sanctions against China. (Bullish ★) (3) AMD (AMD.O) CEO Lisa Su stated that the new-generation MI350-series chips outperform Nvidia in speed, and the market size for this segment is expected to exceed $500 billion in the next three years. (Bullish ★) (4) Tariffs-① Trump will sign key parts of the US-UK trade agreement in the coming days. ② Canadian PM: Progress made in US-Canada trade talks. ③ Trump: Auto tariffs may be raised in the near future. ④ The US Department of Commerce announced a new process for auto tariff credits and also announced a tariff hike on steel home appliances, including washing machines and refrigerators, starting from the 23rd.

Fundamentals: (1) Supply-side disruptions: Overall tin ore supply in major production areas such as Yunnan has tightened. As June progresses, some smelters are considering halting production for maintenance or slightly cutting production. (Bullish ★) (2) Demand side: Recently, as tin prices have returned to the 260,000 yuan threshold, orders from most downstream enterprises have decreased, and purchase willingness has weakened somewhat.

Spot Market: Trading in the spot market has been sluggish. Most traders reported closing only around 10 mt of deals. With reduced orders from downstream enterprises and high prices suppressing demand, only just-in-time procurement is being maintained.