SHFE tin prices dropped back slightly during the night session, with some downstream enterprises starting to build positions and restock [SMM Tin Morning News]

SMM Tin Morning News on June 20, 2025:

Futures Market: The most-traded SHFE tin contract (SN2507) declined slightly and maintained a low-level sideways trend, eventually closing near 259,000 yuan/mt, with overall weak performance.

Macro: (1) According to the latest report released by the International Data Corporation (IDC), the shipments of robotic vacuum cleaners in the Chinese market reached 1.188 million units in Q1 2025, up 21.4% YoY. The growth rate of shipments exceeded 20% for two consecutive quarters. Affected by "national subsidies," the concentration trend of leading producers in the Chinese market was more pronounced than in the global market, accelerating market consolidation, with the market share gap among the Top 5 producers continuously narrowing. (2) On June 19, the Department of Equipment Industry I of the Ministry of Industry and Information Technology, the Quality Development Bureau of the State Administration for Market Regulation, and the Fire Supervision Department of the National Fire and Rescue Administration jointly held a video conference to strengthen the safety management of new energy vehicles (NEVs) and to study and deploy the safety management work for NEVs this year. (3) Several major US tech companies are advocating for a ten-year federal ban to prevent individual US states from formulating their own AI regulatory regulations.

Fundamentals: (1) Supply-side disruptions: The overall tin ore supply in major producing regions 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 returned to the 260,000 yuan threshold, orders from most downstream enterprises have decreased, and purchase willingness has weakened.

Spot Market: Downstream acceptance of high prices is limited. Yesterday's daytime session transactions were mainly driven by immediate needs. Although automotive electronics benefit from the increasing penetration of NEVs, overall procurement is characterized by "small batches and multiple orders," with high prices suppressing restocking willingness. After night session prices pulled back, some downstream enterprises began to build positions and restock, with orders also increasing.