The Most-Traded SHFE Tin Contract Erases Half-Month Gains in Two Days, Spot Market Trading Recovers [SMM Tin Midday Review]

On February 3, 2026, the most-traded SHFE tin contract sn2603 switched to a fluctuating trend after consecutive pullbacks, closing at 374,210 yuan/mt during the midday session, down 8.92%. On the LME, three-month tin maintained a fluctuating trend, temporarily quoted at $48,200/mt, up 5.69%. Over the previous two days, tin prices gave back nearly all gains from the second half of January, with the market gradually entering a consolidation phase after a rapid decline.

Fundamentally, spot market supply remained relatively limited, and prolonged high price pressure earlier led to weak demand transmission. Suppliers mainly focused on digesting inventories, showing weak purchase willingness. After the sharp price correction today, downstream purchasing sentiment, long suppressed by high prices, eased somewhat, and transactions across market segments showed signs of recovery. Yesterday, SHFE tin warrants decreased by 427 mt, indicating a preliminary rebound in spot cargo pick-up willingness. However, current orders were mostly driven by inventory management and the release of previously pent-up rigid demand, with overall demand recovery limited, reflecting more of a marginal improvement after long-term high price pressure.

Overall, weakened macro sentiment support triggered a rapid pullback in tin prices, and the market has now entered a phase of consolidation. Going forward, attention should be paid to macro policy developments, changes in spot market trading activity before the Chinese New Year, and inventory turnover. In the short term, tin prices are expected to maintain a fluctuating trend.