SHFE tin contracts fluctuated after a rapid decline from high levels, with market tension easing and releasing some demand. [SMM Tin Midday Review]

On February 4, 2026, the most-traded SHFE tin contract sn2603 saw its fluctuation range shift upward, driven by the LME, and closed at 387,920 yuan/mt during the midday session, up 3.91%. On the LME side, the three-month LME tin contract maintained a fluctuating trend, temporarily quoted at $49,320/mt, down 1.94%.

Fundamentally, as SHFE tin prices had previously fluctuated at highs, market transactions were sluggish, and end-user demand remained weak under pressure from rising prices of multiple metal raw materials. After the recent broad decline in prices, enterprise tension eased, releasing some order and inventory demand. However, with the Chinese New Year approaching, some downstream sectors and end-users have already entered the holiday state early, leading to limited overall market demand recovery. Yesterday, SHFE inventory fell by 309 mt, reflecting an increase in market willingness to transact.

Overall, after the rapid price decline, the market entered a consolidation phase, and the recovery in market sentiment also limited some downside space. However, with the Chinese New Year approaching, both futures and spot markets are expected to gradually turn sluggish. Going forward, it will be necessary to continue monitoring macro policy developments, changes in spot market trading activity before the holiday, and inventory turnover. In the short term, tin prices are expected to maintain a fluctuating trend.