US to Reduce Import Tariffs on Japanese Automobiles to 15%, SHFE Tin Prices Open Lower and Stabilize in Night Session [SMM Tin Morning Brief]

SMM Tin Morning Brief on September 16, 2025:

Futures: The most-traded SHFE tin contract (SN2510) opened lower in the night session and maintained a low-level consolidation, closing at 272,900 yuan/mt, down 0.33% from the previous trading day.

Macro: (1) Today, CAAM issued the "Initiative on Payment Standards for Automobile Whole Vehicle Enterprise Suppliers." On the same day, 17 major automakers, including FAW, Dongfeng, Changan, SAIC, BAIC, GAC, JAC, Seres, Chery, Geely, Great Wall, BYD, Li Auto, NIO, Leap Motor, XPeng, and Xiaomi Auto, expressed their commitment to actively implement the initiative, build a collaborative and win-win development ecosystem for "automakers-parts," and jointly promote the high-quality development of the automotive industry. (2) The Internet Society of China issued a statement supporting the Ministry of Commerce's investigation into related US products and measures. On September 13, 2025, the Ministry of Commerce of the People's Republic of China announced its decision to initiate an anti-dumping investigation into imported related analog chips originating from the US and an anti-discrimination investigation into US measures in the integrated circuit sector against China. The Internet Society of China firmly supports and endorses this move. In recent years, the US government has broadened the concept of "national security," abusing export controls and unilateral restrictions. Such unfair practices, which violate WTO rules and the international economic and trade order, severely undermine the stability of the global industry chain and supply chain and harm the legitimate rights and interests of Chinese internet enterprises. We firmly oppose these actions. The healthy development of the internet industry relies on an open, fair, and orderly market competition environment. The Internet Society of China calls on the global industry to work together, respect market laws and international rules, and achieve common prosperity and long-term development of the global technology industry. We encourage member enterprises to strengthen independent innovation, deepen international cooperation, and promote the construction of an open, stable, and healthy global semiconductor industry chain ecosystem. (3) The Trump administration of the US announced that import tariffs on Japanese automobiles would be reduced to 15%, effective at 00:01 US Eastern Time (13:01 Japan Time) on September 16.

Fundamentals: (1) Supply-side disruptions: Overall tin ore supply tightened in major production areas such as Yunnan, with some smelters maintaining production halts for maintenance in September (Bullish★). (2) Demand side: PV industry: After the installation rush, orders for PV tin bars in east China declined, and some producers saw lower operating rates; Electronics industry: End-users in south China entered the off-season, coupled with high tin prices, leading to strong wait-and-see sentiment, with orders only meeting essential needs; Other sectors: Demand remained stable in areas such as tinplate and chemicals, without exceeding expectations.

Spot Market: Spot prices remained high, dampening trading activity in the spot market. Downstream buyers primarily made just-in-time procurement, resulting in overall sluggish performance. Most traders reported transactions of only around 10 mt, while a few traders achieved sales of more than one truckload.

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