The Most-Traded SHFE Tin Contract Fluctuated and Pulled Back, Spot Market Trading Remained Sluggish [SMM Tin Morning Brief]

SMM Tin Morning Brief, May 15, 2026:

Futures: The most-traded SHFE tin contract opened slightly higher during the night session before fluctuating and pulling back, closing at 427,920 yuan/mt, down 1.33%.

Macro: (1) South Korean Finance Minister Ku Yun-cheol said on Friday that despite strong export data, the prolonged conflict in the Middle East was gradually impacting the South Korean economy through rising consumer prices, and the government would take active measures to stabilize supply chains. According to South Korea's Ministry of Economy and Finance, Ku chaired a meeting of economy-related ministers in Seoul that day to discuss countermeasures against the economic impact of the Middle East geopolitical crisis. The finance ministry quoted Ku as saying: "The prolonged war has begun to have a noticeable impact on South Korea's real economy and people's livelihoods." Ku also expressed gratitude to South Korean gas stations for cooperating with the government's fuel price cap mechanism, noting that current market oil prices remained below the cap level. He added that South Korea would closely assess changes in the economic environment, including the semiconductor industry boom, and study measures to alleviate economic polarization. The finance ministry said South Korea would announce its H2 economic growth strategy at month-end in June. In addition, Ku chaired a meeting of real estate-related ministers and said the government would use all available means to stabilize the real estate market. (2) Canada on Thursday unveiled a C$1 trillion strategy that plans to double the national power grid capacity by 2050, citing rapidly growing electricity demand and rising energy security needs. As part of the strategy, the Canadian government plans to amend clean electricity regulations to allow greater use of credible carbon offsets and grant existing natural gas power generation units greater operational flexibility to maintain power grid stability and supply reliability.

Fundamentals: (1) Supply side: Most smelters maintained stable production as the main theme in May. (2) Demand side: Downstream purchasing remained cautious, with procurement based on order conditions.

Spot market: Following the rapid pullback after futures surged in the morning session yesterday, overall market trading sentiment remained cautious. The absolute price center remained at elevated levels, with the market dominated by spot order rigid-demand transactions, and downstream enterprises showed little willingness to take orders at high prices. Facing the highly volatile futures environment, downstream and end-user segments at all levels preferred to shorten material turnover cycles. Currently, downstream enterprises mostly followed actual end-user orders, purchasing as needed.

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