The most-traded SHFE tin sn2603 contract fluctuated at highs, downstream demand continued to be suppressed by high prices [SMM Tin Midday Review]

On the afternoon of January 27, the most-traded SHFE tin contract sn2603 traded within a range after opening and closed at 442,580 yuan/mt, up 2.05% from the previous settlement price. Both SHFE and LME showed similar overall trends, with LME tin (three-month tin) also fluctuating within a high range, temporarily quoted at $55,605/mt, up 1.35%.

Trading in the spot market was sluggish, as persistently high prices continued to dampen downstream procurement sentiment. Solder and electronics enterprises mostly maintained minimal just-in-time procurement, operating weakly and steadily due to financial pressure. In the tin chemical sector, demand remained persistently weak due to the downturn in the real estate industry, resulting in sluggish overall transactions and a supply-demand stalemate in the market. Although current geopolitical uncertainties and other factors still provide some support to market sentiment, if macro sentiment cools or funds withdraw in phases, price correction risks need to be monitored.