The State Council Issued the Opinions on Deepening the Implementation of the "Artificial Intelligence +" Action SHFE Tin Prices Rose Slightly and Maintained a High-Level Sideways Trend [SMM Tin Morning Brief]

SMM Tin Morning Briefing on August 27, 2025:

Futures: The most-traded SHFE tin contract (SN2510) fluctuated rangebound after a slight increase during the night session, closing at 270,700 yuan/mt, up 0.36% from the previous trading day.

Macro: (1) The Beijing Municipal Bureau of Economy and Information Technology and the Beijing Communications Administration issued the "Beijing 5G + Industrial Internet Innovation and Development Implementation Plan (2025-2027)", which proposes to strengthen technological innovation and application. It supports top-tier enterprises in conducting technology and product application verification in key industry areas such as industrial manufacturing, vehicle networking, and medical health, based on 5G technologies including high reliability, low latency, lightweight, wide connectivity, high speed, and integrated sensing. This will promote the practical evolution and upgrade of enhanced characteristics of industrial 5G networks. It also focuses on supporting the large-scale application of technologies such as industrial wireless (5G), industrial Ethernet (TSN), edge computing, information models, deterministic networks, industrial computing power, open automation, and industrial data interoperability in key industry fields. The plan also advances the pre-research layout of 6G in industry scenarios and explores commercialization paths. (2) According to India Today, Sputnik, and other media reports on the 26th, sources told the Frankfurter Allgemeine Zeitung that US President Trump had attempted to call Indian Prime Minister Modi at least four times in recent weeks, but Modi refused to speak with him. Sputnik reported that the Frankfurter Allgemeine Zeitung believes signs indicate Modi's dissatisfaction with the US imposing additional tariffs on India and Trump's remarks about India being a "dead economy". Modi's refusal to talk to Trump stems from both "deep anger" and "prudent considerations". (3) The State Council issued the "Opinions on Deeply Implementing the 'Artificial Intelligence +' Action", proposing support for breakthrough innovations in AI chips and the cultivation of enabling software ecosystems, accelerating the technical breakthroughs and engineering implementation of ultra-large-scale intelligent computing clusters. It aims to optimize the national intelligent computing resource layout, improve the national integrated computing power network, fully leverage the role of the "East Data West Computing" national hub, and enhance the coordination of data, computing, electricity, and network resources. It also seeks to strengthen the interconnectivity and supply-demand matching of intelligent computing power, innovate operational models for intelligent computing power infrastructure, encourage the development of standardized and scalable cloud computing services, and promote the widespread, affordable, efficient, green, and secure supply of intelligent computing power.

Fundamentals: (1) Supply-side disruptions: Overall tin ore supply in main production areas like Yunnan is tightening, with some smelters expected to maintain production cuts or undergo maintenance in August (Bullish ★). (2) Demand side: PV sector: After the installation rush, orders for photovoltaic solder bars in east China have declined, leading to a decrease in operating rates for some producers; Electronics sector: South China's electronic end-users are entering the off-season, coupled with high tin prices, resulting in a strong wait-and-see sentiment among end-users, with orders only meeting essential needs; Other sectors: Demand for products such as tinplate and chemicals remains stable, without any significant growth.

Spot market: As spot prices hovered at high levels yesterday, most downstream and end-user enterprises maintained a wait-and-see attitude, using existing inventory for production and making just-in-time procurement only when prices dropped back slightly.

[The information provided is for reference only. This article does not constitute direct advice for investment research decisions. Clients should exercise caution and not use this to replace independent judgment. Any decisions made by clients are unrelated to SMM.]