SHFE tin maintained an upward trend during the night session, while trading in the spot market was sluggish [SMM Tin Morning News]

SMM Tin Morning News on June 27, 2025:

Futures Market: The most-traded SHFE tin contract (SN2507) rose slightly during the night session and maintained a high-level sideways trend, finally closing near 270,700 yuan/mt, up 1.55% from the previous trading day.

Macro: (1) Loongson 3C6000, a new-generation domestically developed general-purpose processor, was launched in Beijing. Its performance is comparable to mainstream products in the market in 2023 or 2024. The newly released Loongson 3C6000 adopts LoongArch, a domestically designed instruction set architecture, without relying on any foreign-authorized technologies or overseas supply chains. It is a new-generation general-purpose processor independently developed and controlled by China, capable of meeting the computing needs of various scenarios such as general computing, intelligent computing, storage, industrial control, and workstations. (Bullish ★) (2) The National Development and Reform Commission (NDRC) held a press conference in June. At the conference, Li Chao, Deputy Director of the Policy Research Office of the NDRC, stated that in terms of the trade-in policy for consumer goods, the support from ultra-long-term special treasury bonds amounts to 300 billion yuan. The first two batches, totaling 162 billion yuan, have been allocated as planned in January and April this year. The third batch of funds for the trade-in policy for consumer goods this year will be allocated in July. Meanwhile, the NDRC will coordinate with relevant parties, adhering to the principles of greater continuity and balance, to formulate monthly and weekly plans for the use of national subsidy funds in different fields, ensuring the orderly implementation of the trade-in policy for consumer goods throughout the year. (Bullish ★)

Fundamentals: (1) Supply-side disruptions: The overall supply of tin ore in major supply regions such as Yunnan has tightened. As June progresses, some smelters are considering production halts for maintenance or minor production cuts. (Bullish ★) (2) Demand side: PV industry: Following the installation rush, orders for PV tin strips in east China have declined, with some producers experiencing a decrease in operating rates. Electronics industry: The electronics terminal market in south China has entered the off-season. Coupled with high tin prices, there is a strong wait-and-see sentiment among terminals, with orders only meeting just-in-time procurement needs. Other sectors: Demand for tinplate, chemicals, etc. remains stable, without showing unexpected growth.

Spot Market: Overall trading in the spot market was sluggish yesterday. Affected by the high-level sideways trend in prices, most downstream enterprises maintained a wait-and-see attitude, with only a very few enterprises making just-in-time procurement of a small amount of tin ingots. Most traders reported that they did not make any shipments yesterday or only sold a single-digit number of ingots. Spot premiums and discounts declined slightly but did not stimulate procurement enthusiasm among downstream enterprises.