SHFE Tin Fell 6% from Highs, Mainly Due to Weaker Macro Sentiment and Increased Warrant Supply Driving Prices Down [SMM Tin Midday Review]

On January 16, after weakening in the night session, the most-traded SHFE tin contract SN2602 opened at 433,040 yuan/mt in the morning attempting to stabilize, but prices continued to decline and eventually closed at 406,220 yuan/mt, down 6.18%. On the LME side, tin futures extended their correction, temporarily quoted at $51,010, down 3.34%. Macro sentiment weakened today, and the metals sector generally declined.

In the spot market, downstream enterprises maintained just-in-time procurement pace. Purchase willingness slightly improved after prices softened, and transactions saw a minor improvement. However, with current absolute prices still in a historically high range, overall market wait-and-see sentiment remained strong, and most enterprises continued to procure cautiously, adopting a wait-and-see approach. Overall, market focus has gradually shifted to changes in macro sentiment and the impact of warrant circulation after delivery on the spot market. In the short term, tin prices are expected to continue fluctuating and consolidating. It is recommended to closely monitor macro policy developments, the pace of inventory digestion, and supply recovery progress in regions such as Myanmar and Yunnan.