The most-traded SHFE tin contract price fluctuated at highs, with weak upward momentum in the afternoon. [SMM Tin Midday Review]

SHFE Tin Fluctuated at Highs as Tug-of-War Between Sellers and Buyers Intensified

This morning, the most-traded SHFE tin contract showed a pattern of fluctuating at highs. During the night session, the SHFE tin 2512 contract closed at 285,000 yuan/mt, up 0.44% from the previous day. In the early trading session today, the most-traded 2512 contract opened at 285,580 yuan/mt, and the futures hovered at highs during the morning session. By the midday close, the price held near 284,920 yuan/mt. On the LME tin front, the three-month LME tin closed at $36,180/mt overnight, up 1.29%, indicating that the overseas market was also boosted by macro sentiment.

From a macro perspective, the simultaneous rise of the three major US stock indices boosted market risk appetite, but the relatively strong US dollar at this stage also put pressure on metal prices. Domestically, the October manufacturing PMI was 49.0%, down 0.8 percentage points from the previous month, indicating that economic recovery still faces challenges. Investors exhibited strong wait-and-see sentiment, and position reductions by bulls limited upside room for prices.

In the short term, the most-traded SHFE tin contract is expected to continue fluctuating at highs, with resistance near 286,000 yuan/mt and support around the 284,000 yuan/mt level. During the afternoon trading session, close attention should be paid to changes in market sentiment and capital flows. Against the backdrop of weak supply and demand, tin prices are unlikely to achieve a trend breakthrough, and cautious trading is advised.