SMM Tin Morning Comments on December 3, 2025:
Futures: The most-traded SHFE tin contract (SN2601) opened slightly lower in the night session, then fluctuated and rebounded, closing at 306,410 yuan/mt, up 0.20% from the previous trading day.
Macro: (1) The Communist Party of China Zhejiang Provincial Committee issued a proposal for formulating the 15th Five-Year Plan for Zhejiang's National Economic and Social Development, which mentioned accelerating the construction of a national computing power hub node and building a new-type computing power system. It aims to create the world's best open-source ecosystem, consolidate and expand the leading position in model development. Focusing on key areas such as embodied AI and autonomous driving, the plan calls for building nationally leading core industrial clusters, promoting innovation in smart products and terminals, and establishing a coordinated development pattern across the entire industry chain, including chips, large models, intelligent agents, application services, and smart terminals. (2) Cloud service provider Vultr is building a 50-megawatt (MW) chip cluster composed of AMD (AMD.O) AI processors at its Ohio data center, aiming to provide AI infrastructure at a lower cost. The AMD-backed company announced on Tuesday that it will invest over $1 billion in the facility, enabling future customers to train or run AI models, with operations expected to begin in Q1 2026. Vultr is one of the cloud service providers attempting to profit from the surge in AI demand with more economical budgets. The company stated that its new chip cluster is much smaller than the large facilities operated by giants like Microsoft, Meta, and Google, but will offer more cost-effective computing power. Vultr CEO J.J. Kardwell claimed that its cloud service prices are "typically half of what the largest data center operators charge." (3) US President Donald Trump said he may announce the US Fed Chairman candidate early next year, adding that Treasury Secretary Besant does not want the job title. Trump previously stated that he had decided on his choice for chairman but did not want to reveal it publicly. According to earlier reports by The Wall Street Journal, long-time economic advisor Hassett is viewed by those close to Trump as a leading candidate.
Fundamentals: (1) Supply-side disruptions: Tin ore supply is tightening in major production areas like Yunnan. Most smelters are expected to maintain stable production in December. (2) Demand side: Orders have decreased significantly due to weak demand in consumer electronics and home appliance markets. Downstream procurement remains cautious, with high prices noticeably suppressing actual consumption. Limited boost from emerging sectors: Although AI computing power upgrades and growth in PV installations have driven some tin consumption, their current contribution remains small and insufficient to offset the decline in traditional sectors.
Spot market: Trading in the spot market was sluggish. Some downstream enterprises, having depleted their inventory, recently made just-in-time procurement of small quantities of tin ingots based on order volumes. Most traders reported transactions of only around 10 mt, with feedback indicating few inquiries from downstream enterprises.
[Data Source Statement: Data other than publicly available information is processed by SMM based on public information, market communication, and SMM's internal database model, and is for reference only, not constituting decision-making advice. The information provided is for reference only. This article does not constitute direct investment research or decision-making advice. Clients should exercise caution in decision-making and not use it to replace independent judgment. Any decisions made by clients are unrelated to SMM.]
