SHFE Tin Rebounded Past 400,000 Mark After Holiday, Absolute High Prices Stalled Spot Trades [SMM Tin Midday Review]

SMM Tin Midday Review, May 6, 2026

Before the holiday, SHFE tin futures prices were in the doldrums. Today, the most-traded contract broke above the 400,000 yuan mark, closing at 408,570 yuan/mt in the morning session, up 6.6%. LME side, LME tin traded steadily during China's Labor Day holiday, with the price center edging up in a narrow range. Today, as the Chinese market reopened, LME tin rose in tandem, driven by SHFE tin. LME three-month tin was temporarily quoted at $52,050/mt, up 4.43%.

On the macro front: (1) To maintain ample liquidity in the banking system, on May 6, 2026, the People's Bank of China conducted 300 billion yuan in outright reverse repo operations via fixed-quantity, interest rate tender, and multiple-price winning bid method, with a tenor of 3 months (91 days) and a maturity date of August 5, 2026 (to be postponed in case of holidays). (2) On the evening of May 5 US Eastern Time, US President Trump posted on social media, stating that the "Freedom Plan" to "facilitate" vessel passage through the Strait of Hormuz would be suspended in the short term.

Spot side, on the first trading day after the holiday, spot market participants were generally in a wait-and-see mode. As futures prices rebounded quickly and climbed back above 400,000 yuan, market transactions were significantly suppressed. Current spot premiums remained in the range of 1,300-2,000 yuan/mt.

Overall, geopolitical tensions in the Middle East persisted, with normal passage through key shipping lanes yet to be restored. Neither the US nor Iran made concessions on negotiation issues, and macro uncertainties remained. Fundamentals side, the elevated absolute prices significantly suppressed market transactions, capping upside potential. In the short term, the most-traded SHFE tin contract is expected to swing wildly.