SHFE tin prices remain rangebound at low levels, with trading heating up in the spot market [SMM tin morning news]

SMM Tin Morning Express on July 8, 2025:

Futures Market: The most-traded SHFE tin contract (SN2508) maintained low-level consolidation during the night session, eventually closing near 263,600 yuan/mt, down 0.76% from the previous trading day.

Macro Developments: (1) From January to June 2025, the average price reduction for new energy vehicle models reached 23,000 yuan, equivalent to a 12% reduction rate. In June, the average price cut narrowed to 15,000 yuan with a 10.4% reduction rate (bullish ★). (2) Recently, the Shanghai Stock Exchange hosted the 5th session of the Second Season of the STAR Market "New Quality Productive Forces" Industry Salon themed "Optical Chips: China's New Computing Power Catalyst". Leading optical chip companies including Taclink, Everphoton, Shijia Photonics, and Yuanjie Technology gathered with securities firms and fund managers to discuss advancing China's optical chip sector. (3) U.S. President Trump stated the U.S. tariff implementation date is August 1, but remains open to delays if countries propose alternatives. When asked about deadline certainty, Trump responded: "I'd say yes, but not 100% sure. If they call and want to handle it differently, we're open to that." Trump began informing trading partners including Japan and South Korea on Monday that the U.S. will significantly raise tariffs starting August 1, marking a new phase in the trade war initiated earlier this year.

Fundamentals: (1) Supply Disruptions: Mainland tin ore supply in Yunnan and other key producing regions remains tight. Some smelters may extend maintenance shutdowns or implement minor production cuts in July (bullish ★). (2) Demand Side: PV Sector: Post-installation rush, PV solder bar orders declined in eastern China with some producers reducing operating rates. Electronics Sector: Southern China's electronics end-users entered off-season, coupled with high tin prices, resulting in cautious wait-and-see sentiment with orders limited to essential needs. Other Sectors: Demand from tinplate and chemical sectors remained stable without unexpected growth.

Spot Market: Trader Feedback: Daily trading volume generally reached only 1-2 trucks, with a few traders completing nearly 100 mt. Downstream buyers started restocking at yesterday afternoon's low prices, with pricing focused around those levels. Consumer Behavior: Recovery in orders for PV solder and electronics enterprises, accompanied by increased purchase activity.
[Information provided is for reference only. This document does not constitute direct investment research advice. Clients should exercise caution in decision-making, avoid relying solely on this analysis, and retain full responsibility for their own judgments. Any decisions made shall not be attributed to SMM.]