The most-traded SHFE tin contract was in the doldrums near 390,000, and market trading activity recovered after high prices loosened. [SMM Tin Futures Brief Review]

On January 19, the most-traded SHFE tin SN2602 contract continued its pullback, opening at 393,700 yuan/mt and closing at 389,500 yuan/mt, down 5.98%. After declining in Friday's night session, futures consolidated sideways near 390,000 yuan during the daytime session. On the LME, three-month tin was quoted at $47,910, up 0.3%. As macro tensions gradually eased, SHFE saw a reduction in positions amid the decline, with both SHFE and LME entering a consolidation phase.

In the spot market, last week's repeated record highs for tin prices generally constrained downstream enterprises' procurement, with most controlling the pace and making limited follow-up purchases. After prices pulled back below 400,000 yuan during Friday's night session, trading activity improved somewhat, with some orders being released rationally. However, as the traditional consumption off-season persists and high prices continue to suppress demand, the typical concentrated stocking demand seen before Chinese New Year in previous years has not yet materialized significantly.

Today, the Shanghai Futures Exchange announced the addition of a new tin futures delivery warehouse in Guangdong and the expansion of existing warehouses to optimize the delivery layout and enhance storage capacity. Specific details include:

1. Adding Guangdong CMST Chenshizhaobang Logistics Co., Ltd. as a tin futures delivery warehouse, located at No. 12 Baoying West Road, Guangzhou City, Guangdong Province, with an approved capacity of 3,000 mt and no regional premiums or discounts.

2. Increasing the approved capacity of the tin futures delivery warehouse at the storage site of Guangdong Jushen Warehouse Co., Ltd., located at No. 1 Jintai Road, Danzao Logistics Center, Danzao Town, Nanhai District, Foshan City, from 4,000 mt to 6,000 mt.

The increase in delivery warehouse capacity helps enhance the service capability and delivery convenience of the futures market, potentially boosting futures activity in the long term. However, in the short term, attention should be paid to the progress of actual warrant registration and the impact of changes in spot liquidity on the market structure. Overall, after consecutive gains, tin prices have entered a phase of adjustment. Subsequent focus should be on changes in the macro environment, the pace of pre-holiday stockpiling by downstream enterprises, and inventory and delivery structures.