The Most-Traded SHFE Tin Contract Extended Gains by 7%, Prices Consolidate at High Levels After Exchange Adjusts % Change Limits [SMM Tin Midday Review]

On January 15, SHFE tin continued to strengthen during the night session and fluctuated at highs during the afternoon session. It opened at 420,000 yuan/mt in the morning and closed at 428,290 yuan/mt, up 7.12%. The Shanghai Futures Exchange adjusted the daily price limit for tin futures from 8% to 11%, increasing the risk of subsequent price fluctuations. LME tin was quoted at $52,750, down 2.31%, trading in the weaker range of high fluctuations. Recently, driven by macro risk-off sentiment, funds continued to flow into the commodities sector. Coupled with strong long-term demand from emerging fields and concerns over supply-side stability, market sentiment held up well, with a strong bullish atmosphere.

In the spot market, prices consolidated at highs after breaking through 430,000 yuan. With high prices, only rigid demand orders followed, and the traditional pre-holiday stockpiling habit has not yet emerged this year. Downstream enterprises faced pressure on their capital chains, purchasing on an as-needed basis. As prices continue to hit new highs, mid- and downstream players may enter the holiday state early. Overall, tin prices are expected to hover at highs in the short term. It is recommended that all parties in the industry chain prudently manage exposure risks, avoid blindly chasing highs, and closely monitor fundamental signals such as the recovery of Myanmar's exports and changes in tin concentrate TCs in Yunnan, as well as potential shifts in macro sentiment.