Spot market transactions are mainly driven by rigid demand, with most traders' daily average shipments only 10-30 mt [SMM Morning Tin News]

SMM Tin Morning News on June 24, 2025:

Futures Market: The most-traded SHFE tin contract (SN2507) fluctuated upward and remained at highs, closing near 263,000 yuan/mt, rising slightly from the previous trading day.

Macro: (1) Sichuan: From January to May this year, key projects completed an investment of 403.69 billion yuan, and the industrial added value of enterprises above designated size increased by 8% YoY (bullish ★). (2) The National Federation of Industry and Commerce Automobile Dealers Chamber of Commerce issued an initiative calling on automobile producers to optimize rebate policies and shorten the rebate settlement period. First, establish clear and transparent rebate policies, simplify rebate settings, clarify rebate standards, and eliminate ambiguous rebates. Second, shorten the rebate settlement period. Given the importance of rebates to dealers, it is urged that all brands adjust the rebate settlement period to no more than 30 days. Third, eliminate excessive restrictions on rebate settlement and usage (bullish ★). (3) Shanghai Institute of Microsystem and Information Technology, Chinese Academy of Sciences: Breakthroughs have been made in the research of bidirectional high thermal conductivity graphite films, providing technical support for thermal management of 5G chips and power semiconductors (bullish ★).

Fundamentals: (1) Supply-side disruptions: The overall tin ore supply in major producing areas such as Yunnan has tightened. Entering June, some smelters are considering halting production for maintenance or slightly cutting production (bullish ★). (2) Demand side: PV industry: After the installation rush ended, orders for PV tin strips in east China declined, and the operating rates of some producers dropped. Electronics industry: The electronics terminal market in south China entered the off-season. Coupled with high tin prices, end-users maintained a strong wait-and-see sentiment, and orders only met immediate needs. Other sectors: Demand in areas such as tinplate and chemicals remained stable, with no unexpected growth observed.

Spot Market: Transactions in the spot market were mainly driven by immediate needs. High prices suppressed restocking willingness, and downstream enterprises mostly adopted a "small-batch, multi-batch" strategy. The daily average shipments of most traders were only 10-30 mt.