The most-traded SHFE tin contract fell below the 400,000 mark during the night session, and downstream enterprises began to restock in small quantities [SMM Tin Morning Update].

June 10, 2026 SMM Tin Morning Update:

Futures: The most-traded SHFE tin contract edged higher in the night session before moving sideways, with its price center hovering around 400,000 yuan/mt. It closed at 401,590 yuan/mt, down 0.79%.

Macro: (1) BYD Company Limited (01211.HK) announced that it noted the US Department of Defense issued a "Notice on the Designation of Chinese Military Companies" on June 8, 2026 (US time). According to the notice, the US Department of Defense has added the Company to the list of Chinese Military Companies. As the Group is neither a Chinese military company nor a military-civil fusion enterprise linked to China’s national defense industry, the Company believes there is no legitimate basis for its inclusion on this list. The Chinese Military Companies list is not a sanctions list. Being placed on the list will not affect the Group’s normal business operations, nor will it affect its business dealings with any party (except the US Department of Defense). The US government procurement restrictions associated with this list will not impact the Company’s business, and the list does not restrict trading in the Company’s securities. (2) The world’s largest 271,000 m³ ultra-large LNG carrier officially began construction today at CSSC Hudong-Zhonghua Shipbuilding. Currently, China’s global LNG carrier market share has surpassed 30%. Hudong-Zhonghua Shipbuilding holds nearly 60 LNG carrier orders pending construction, ranking first globally in total orderbook capacity, with its production schedule already extending beyond 2030.

Fundamentals: (1) Supply side: In June, most smelters focused on maintaining stable production. (2) Demand side: Downstream purchasing remained cautious, with procurement largely based on orders.

Spot Market: The absolute price had previously stayed at elevated levels for an extended period, significantly suppressing downstream enterprises’ restocking demand. This pent-up purchasing need was partially released yesterday when futures prices quickly dipped to the 400,000 yuan/mt mark. As futures prices declined further, buying activity in the spot market became more restrained, dominated by spot orders as buyers covered small volumes at lower prices.

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