The Most-Traded SHFE Tin Contract Opened Lower and Then Traded Stronger, Spot Market Recovers Amid Downtrend [SMM Tin Midday Review]

On February 6, 2026, the most-traded SHFE tin sn2603 contract opened lower in the morning session but held up well, though it continued its overall correction trend. By the midday close, it settled at 359,400 yuan/mt, down 5.23%. On the LME, three-month tin also entered a consolidation phase, temporarily quoted at $45,935/mt, down 2.25%.

In the spot market, the tight supply situation remained unchanged. The price correction stimulated some downstream demand release, keeping spot offers at a high premium. Trading activity improved this week, as pre-holiday stockpiling demand, previously suppressed by high prices, picked up following the price decline. With prices trending downward, enterprises generally remained cautious, mainly purchasing in batches. However, the current demand recovery is not broad-based, as some downstream solder enterprises have already entered the holiday early, focusing on inventory management. Coupled with the gradual tightening of pre-holiday logistics, trading is expected to gradually turn sluggish starting next week.

From a macro perspective, the market sentiment previously driven by geopolitical events and other factors has significantly cooled. The nomination of the Fed Chairman became a turning point for market expectations. Expectations of a US dollar rebound, combined with tin prices already at high levels, led to a loss of further upward momentum. Bulls took the opportunity to close positions and exit, intensifying the downward pressure on prices. Overall, against a backdrop of weakening macro drivers and subdued pre-holiday demand, tin prices are expected to remain in the doldrums in the short term. Going forward, close attention should be paid to changes in macro policies, the pace of post-holiday downstream resumption of operations, and the recovery in orders.