US Treasury Secretary Bessent said that there would be a flurry of trade agreement signings. SHFE tin prices remained in the doldrums [SMM Tin Morning News]

SMM Tin Morning Brief on July 1, 2025:

Futures Market: The most-traded SHFE tin contract (SN2508) opened lower during the night session and dropped back slightly, eventually closing near 267,000 yuan/mt, down 0.42% from the previous trading day.

Macro: (1) US Treasury Secretary Bessent: In the final week before the July 9 deadline, there will be a wave of intensive signing of trade agreements. (2) On the morning of June 30, 52 NEVs slowly drove out of the export supervision warehouse at Nansha Port, boarding the "Sui Gang Auto 01" ro-ro ship and heading for the Hong Kong region. This marks the smooth opening of the "Sui Gang Auto Export Express Line" in the Guangdong-Hong Kong-Macao Greater Bay Area, making the export of domestically produced NEVs to the Hong Kong region more efficient and convenient. According to existing laws in Hong Kong, imported vehicles in Hong Kong need to initiate customs declaration and registration procedures after entering Hong Kong. The governments of Guangzhou and Hong Kong continue to deepen the alignment of rules and mechanisms, innovatively launching the "Sui Gang Auto Export Express Line" cooperation model. (Bullish ★) (3) The Loongson 3C6000, a new generation of domestically produced general-purpose processor, was recently released. The breakthrough of the "China Chip" represents the pulse of accelerating the realization of high-level scientific and technological self-reliance and self-improvement. This homegrown CPU, based on the domestically developed LoongArch instruction set, features high performance, high reliability, and high security, meeting the computational needs of various scenarios such as general computing, intelligent computing, storage, industrial control, and workstations. (Bullish ★)

Fundamentals: (1) Supply-side disruptions: The overall supply of tin ore in major producing areas such as Yunnan is tightening. In July, some smelters may maintain shutdowns for maintenance or slightly cut production. (Bullish ★) (2) Demand-side: PV industry: After the installation rush ends, orders for PV tin strips in east China have declined, and the operating rates of some producers have dropped. Electronics industry: The electronics terminal market in south China has entered the off-season, coupled with high tin prices, resulting in a strong wait-and-see sentiment among terminals, with orders only meeting immediate needs. Other sectors: Demand for tinplate, chemicals, etc. remains stable, without unexpected growth.

Spot Market: Transactions in the spot market were dismal yesterday. Most downstream enterprises adopted a wait-and-see attitude towards current prices, waiting for better purchasing and restocking opportunities. Most traders only closed a few tons of transactions yesterday, with overall transactions being sluggish.