The most-traded SHFE tin contract was in the doldrums near 390,000, with market trading atmosphere recovering after high prices loosened [SMM Tin Noon Review]

On January 19, the most-traded SHFE tin contract SN2602 continued to pull back, opening at 393,700 yuan/mt and closing at 389,500 yuan/mt, down 5.98%. After falling during Friday's night session, futures traded sideways near 390,000 yuan/mt today. On the LME, three-month tin was quoted at $47,910, up 0.3%. As macro tensions eased, SHFE tin saw long liquidation, with both SHFE and LME markets entering a consolidation phase.

In the spot market, tin prices hit repeated highs last week, limiting downstream enterprises' procurement, with most controlling the pace and buying in small amounts. After prices pulled back below 400,000 yuan/mt during Friday's night session, trading activity improved, with some orders released rationally. However, the traditional consumption off-season persists, and high prices have suppressed the usual pre-Chinese New Year stocking demand, which has not yet materialized significantly.

Today, the Shanghai Futures Exchange announced new tin futures delivery warehouses in Guangdong and expanded existing ones to optimize delivery layout and enhance storage capacity. Details include:

1. Adding 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, with no regional premiums or discounts.

2. Increasing the approved capacity of the tin futures delivery warehouse at 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 increased delivery capacity is expected to enhance the futures market's service capability and delivery convenience, potentially boosting futures activity in the long term. However, short-term attention should be paid to the progress of warrant registration and changes in spot liquidity affecting the market structure. Overall, after continuous gains, tin prices are in a phase of adjustment, with further focus on macro environment shifts, downstream pre-holiday stockpiling pace, and inventory and delivery structures. SHFE tin is expected to remain in the doldrums in the near term.