High prices curb downstream purchase willingness, with SHFE tin prices fluctuating rangebound at 263,000 yuan/mt [SMM Tin Morning News]

SMM Tin Morning News on June 18, 2025:

Futures Market: The most-traded SHFE tin contract (SN2507) fluctuated rangebound during the night session, eventually closing at 263,030 yuan/mt, pulling back 0.47% from the previous day.

Macro: (1) The National Association of Financial Market Institutional Investors (NAFMII) held a symposium to support the high-quality development of automakers in China's interbank market. (Bullish ★) (2) Guangzhou Huangpu: Encouraging the development of high-end semiconductor and sensor materials to build the core bearing area for the third pole of China's integrated circuit industry. (Bullish ★) (3) The "first move" of the US Fed's new regulatory vice chair, Michelle Bowman: She will convene a meeting to discuss relaxing bank leverage ratio requirements.

Fundamentals: (1) Supply-side disruptions: Overall tin ore supply in major producing regions such as Yunnan is tightening. As June progresses, some smelters are considering halting production for maintenance or implementing minor production cuts. (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: Consumer electronics have entered the off-season, with mobile phone and PC orders characterized by "small batches and multiple deliveries." Demand for tinplate and chemicals remains stable, but high prices have curbed downstream purchase willingness. The spot market is sluggish, with daily trading volume at just over 10 mt.