PV solder and electronics companies see shrinking orders; SHFE tin prices fluctuate rangebound [SMM Tin Morning News]

SMM Tin Morning Express on July 7, 2025:

Futures Market: The most-traded SHFE tin contract (SN2508) fluctuated rangebound during night session, closing at approximately 267,300 yuan/mt, down 0.60% from the previous trading day.

Macro Developments: (1) According to the Wall Street Journal: TSMC will prioritize US investments to address chip tariff threats, delaying the launch of its second Japanese chip plant (Bearish ★). (2) Some EU automakers and governments are pushing for a tariff reduction agreement with the US, with the EU increasing US investments. The EU must reach a trade arrangement with Trump by July 9, or tariffs on nearly all EU goods exported to the US will surge to 50%. (3) India proposes retaliatory tariffs on US automotive sector duties under WTO safeguard measures. A WTO notification circulated at India's request states: "The proposed suspension of concessions or other obligations would raise tariffs on specific US-origin products." India has notified the WTO Council for Trade in Goods of its intention to suspend concessions under certain WTO provisions.

Fundamentals: (1) Supply Disruptions: Main tin ore producing regions like Yunnan face tightening supply. Some smelters may maintain maintenance shutdowns or implement minor production cuts in July (Bullish ★). (2) Demand Side: PV Sector: Post-installation rush, PV solder bar orders in east China declined, with some producers reducing operating rates. Electronics Sector: Southern China's electronics terminal market entered off-season. Elevated tin prices and wait-and-see sentiment led to minimal order placements beyond essential needs. Other Sectors: Stable demand for tinplate and chemicals without unexpected growth.

Spot Market: Traders reported daily trading volume generally at 10-30 mt, with some transactions as low as single-digit tons. Downstream buyers only hedged and restocked during minor price pullbacks, concentrating purchases at week-low price ranges while halting procurement during peak prices. Consumer Behavior: Shrinking orders for PV solder and electronics companies, with an east China consumer receiving single-digit daily orders. Southern China home appliance producers reduced production schedules, export orders remained negligible, and restocking focused on existing inventory depletion.
[Information provided is for reference only. This document does not constitute direct investment research advice. Clients should exercise caution, avoid substituting independent judgment, and understand that SMM bears no responsibility for any trading decisions made hereunder.]