SHFE Tin Prices Surged and Fell Back, Spot Market Transactions Cooled Down [SMM Analysis]

According to an SMM survey, as of June 14, the total social inventory of tin ingots in Shanghai, Jiangsu and Guangdong was 17,620 mt, an increase of 317 mt WoW. Last week, tin prices showed a significant surge followed by a pullback. Last Tuesday, SHFE tin prices stabilised at 264,000 yuan/mt. However, SHFE tin prices started to show a clear upward trend last Wednesday, and during the night trading session, they further climbed to a high of 277,000 yuan/mt and continued to fluctuate within this range last Thursday and Friday. Although tin prices retreated from their highs, they showed a strong upward trend since the beginning of last week, once approaching the critical threshold of 278,000 yuan/mt. Such price fluctuations had a significant impact on downstream procurement activities. As tin prices continued to rise, downstream producers displayed a more cautious attitude in their purchasing activities. Most producers preferred to make rigid purchases and place low-price orders to cope with market price instability. It is clear that the significant rise in tin prices has led to a decrease in overall market transaction activity, with relatively subdued trading atmosphere. This reflects the cautious attitude of market participants in the face of price fluctuations and their flexible response strategies.