The most-traded SHFE tin contract consolidated at highs, and spot market trading was mediocre. [SMM Tin Morning News]

SMM Tin Morning Briefing, July 7, 2026:

The most-traded SHFE tin 2608 contract consolidated at highs during the night session on the 6th, closing at 409,800 yuan/mt, up 0.35%, with open interest increasing by 855 lots to 42,500 lots.

Macro:

(1) South Korean battery maker LG Energy Solution (LGES) said on Tuesday that its operating profit is expected to fall 77% to 113 billion won (approximately $73.91 million) for April-June, as weakening EV demand continues to drag on battery sales. Market forecasts had predicted a profit of 249 billion won. According to a regulatory filing by LGES, revenue is expected to be up 24.8% YoY, reaching 7.6 trillion won. LGES stated that the quarterly earnings guidance includes tax credits under the US Inflation Reduction Act (IRA) provided for the company's battery production in the US. Excluding these tax credits, the company would have recorded an operating loss of 128 billion won.
(2) Broadcom (AVGO.O) said it and Apple (AAPL.O) have reached an agreement to extend their partnership through 2031, jointly developing and supplying a range of custom chips. Broadcom has long been a key component supplier to Apple, including custom radio-frequency chips, Wi-Fi and Bluetooth connectivity chips, and other networking semiconductors for iPhones. Apple is one of Broadcom's largest clients. Analysts estimate that Apple accounts for a significant portion of Broadcom's annual revenue and is a key contributor to the chipmaker's semiconductor business.
(3) Wus Printed Circuit announced in an investor relations activity record that the company's planned investment of approximately 4.3 billion yuan, initiated in Q4 2024, to build a new high-end printed circuit board expansion project for supporting AI chips began construction in late June 2025 and is currently progressing in an orderly manner. The project is expected to start trial production in H2 2026 and gradually ramp up capacity. The company engages fully with terminal client product development at a very early stage, participating in advance in the electrical performance verification and reliability testing of next-generation high-end materials, shortening material certification cycles and ensuring priority allocation guarantees when supply is tight. Simultaneously, it fully implements strategic safety inventory for key materials and accelerates diversification and localization certifications to reduce the risk of raw material supply disruptions, strengthening a resilient supply chain security barrier.

Fundamentals: (1) Supply Side: The tight pattern of tin ore remains unresolved, but signs of marginal improvement are increasing. In July, most smelters will focus on maintaining stable production. (2) Demand Side: The traditional off-season effect deepens, with rigid demand support and high-price suppression coexisting. Downstream procurement remains cautious, based on order situations.

Spot Market: Overall spot market transactions were mediocre yesterday, with sluggish trading sentiment. Suppliers actively quoted prices in line with market movements, but as futures prices quickly surged again and approached the 410,000 yuan/mt mark, fear of high prices among buyers intensified again. Only a small amount of rigid demand orders were placed sporadically throughout the day, while downstream enterprises adopted a wait-and-see attitude, mostly preferring to wait for prices to pull back or stabilize before making purchases.
 

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