The Price Center of the Most-Traded SHFE Tin Contract Remained at a Relatively High Level, but Resistance Gradually Emerged [SMM Tin Morning Meeting Summary]

SMM Tin Morning Meeting Minutes, June 1, 2026

Last week, on the international macro perspective, the EU planned to restart the Chips Act and invest heavily to boost its domestic semiconductor industry, highlighting the urgency of global chip supply chain restructuring. Meanwhile, the AI boom continued to drive tech stocks higher, with Micron Technology's market capitalization surpassing the $1 trillion mark and TSMC's surging share price propelling Taiwan's stock market past India's, reflecting the strong boost of artificial intelligence infrastructure on high-end chip demand and laying a macro foundation for the long-term demand for tin. In terms of China's tin market supply and demand, the overall picture presented a weak equilibrium of stable supply and cautious demand. In terms of supply, most smelters maintained stable production as the main theme in May, and social inventory of tin ingots continued on a destocking trend, indicating that previously accumulated inventories awaiting digestion continued to decline. Demand side, although medium and long-term expectations for new energy and computing power sectors remained positive, current spot market sentiment was notably suppressed by high prices. Downstream and end-user procurement was generally cautious, mostly limited to rigid demand and order-based purchasing. The overall market trading atmosphere was mediocre, with only small-scale restocking when prices pulled back, while traders also tended to hold prices and wait. Overall, the optimistic expectations at the macro perspective diverged from the sluggish spot market transactions in the short term. The price center of the most-traded SHFE tin contract remained at a relatively high level, but resistance gradually emerged. Tin prices are expected to continue fluctuating at highs next week, but there is a risk of pullback if new demand increments fail to materialize. Investors should be alert to the possibility of price loosening caused by cooling macro sentiment and weak spot demand, remain rational, exercise caution in chasing highs, and closely monitor the downstream restocking pace and actual recovery signals in end-use demand.