The Most-Traded SHFE Tin Contract Continued to Climb During Night Session, Spot Market Trading Expected to Cool Down [SMM Tin Morning Brief]

SMM Tin Morning Brief, May 29, 2026:

Futures: The most-traded SHFE tin contract opened slightly higher during the night session and continued to climb, closing at 430,260 yuan/mt, up 2.59%.

Macro: (1) A draft plan showed that the EU is revitalizing its struggling semiconductor industry by relaunching the Chips Act, a move expected to require €120 billion (approximately $140 billion) in public-private investment by 2035. The upcoming Chips Act 2 will focus on practical measures to boost domestic demand for locally produced chips within the EU, as the original act from 2023 failed in its efforts to expand the EU's market share. According to the plan, a major project under consideration is a €30 billion investment in a new factory for producing AI semiconductors and advanced 3nm chips, with funding to be jointly provided by the European Commission (the EU's executive body), member states, and private enterprises. The European Commission will also facilitate connections between companies in sectors such as telecommunications, national defense, and automotive with chip suppliers, who will develop technologies tailored to these companies' needs. The draft plan is about to be submitted to legislators for review next week but is still subject to change. (2) Catalyzed by AI computing power and electricity demand, SST (Solid-State Transformer) technology is quietly emerging as a new trend in the power equipment sector. Reporters noted that recently, multiple publicly listed firms have announced their entry into the SST field. As a medium-to-high voltage directly connected power electronic device, SST differs from the electromagnetic induction path of traditional power-frequency transformers based on "iron core + windings." It utilizes power semiconductor devices to directly build a high-frequency "power direct bridge" between the medium-voltage side and the DC low-voltage side. This architecture eliminates bulky power-frequency transformers, multi-stage rectifiers, and filtering devices, condensing complex substation processes into a compact form. Since the beginning of this year, the sustained boom in AI data centers (AIDC) has pushed SST, a highly integrated power electronic solution, to the forefront.

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

Spot market: Trading in the spot market was mediocre yesterday. Most traders reported less than one truckload of transactions, while a few traders completed around one truckload. The overall fluctuating trend in prices yesterday dampened purchase sentiment among downstream and end-user enterprises, with most making just-in-time procurement.

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