The Most-Traded SHFE Tin Contract Maintained a Sideways Trend During the Night Session with Low Market Trading Activity [SMM Tin Morning Brief]

SMM Tin Morning Brief, June 1, 2026:

Futures: The most-traded SHFE tin contract moved sideways during the night session, closing at 425,310 yuan/mt, down 0.27%.

Macro: (1) According to Barron's, the market might assume that Tesla would offer discounts to bulk buyers. However, that was not the case. It turned out that one of the largest buyers of the Tesla Cybertruck was SpaceX. Musk's rocket company spent $131 million purchasing the futuristic pickup truck. According to SpaceX's S-1 IPO registration statement, the EVs were purchased "at Tesla's manufacturer's suggested retail price." SpaceX did not receive any discounts. Based on this amount, approximately 1,600 units of trucks could be purchased. This figure accounted for about 8% of the total Cybertrucks Tesla sold in the US market in 2025. (2) MCU and power semiconductor giant STMicroelectronics issued a "Price Adjustment Notification" to clients on May 28, announcing that it would raise prices on selected products effective June 28, 2026. This was the second price hike announcement by STMicroelectronics this year, following the one on March 24. With only two months in between, STMicroelectronics' renewed price adjustment underscored the sustained intensification of cost-side pressures.

Fundamentals: (1) Supply side: Most smelters focused on maintaining stable production in May. (2) Demand side: Downstream purchasing remained cautious, with procurement conducted based on order conditions.

Spot market: Overall trading of tin ingots was mediocre last week, with low market trading activity. High absolute prices significantly suppressed purchase willingness among downstream and end-user enterprises, with strong wait-and-see sentiment prevailing. The market repeatedly fell into a stagnant pattern of high prices and few buyers. Only when futures experienced periodic pullbacks did some rigid restocking demand and spot order placements emerge. Downstream enterprises' acceptance of high prices remained limited throughout, maintaining a cautious purchasing attitude overall.

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