The most-traded SHFE tin contract opened slightly higher in the morning before declining, with cautious market sentiment amid high price volatility [SMM Tin Midday Review]

On January 20, the most-traded SHFE tin contract SN2602 pulled back after an early rebound, once testing 404,400 yuan/mt during the session, and finally closed at 395,810 yuan/mt, up 2.26%. On the LME side, tin futures were quoted at $49,255, down 1.17%. Both SHFE and LME entered a consolidation phase after retreating from highs.

In the spot market, prices stabilized after a slight increase in the morning session, with downstream enterprises generally maintaining a wait-and-see attitude and cautious purchasing sentiment. Some demand was released during the previous two days of price pullbacks, leading to lower market activity in the morning. As prices pulled back again during the session, some end-users may show renewed interest in inquiries. Overall, tin prices remain at historically high levels, with the impact of the off-season prolonged by high prices, limiting downstream restocking willingness. Going forward, attention should be paid to changes in macro sentiment, pre-holiday stockpiling pace, and the impact of inventory and warrant changes on the market structure.