Futures Market: Dollar Index Decline Boosts Tin Prices, LME Tin Closes Up 2.21%

Overnight Market Performance

The London Metal Exchange (LME) tin market saw a 2.21% increase overnight, closing at $16,000 per ton, down $80 per ton (-0.5%) from the previous trading day. Trading volume stood at 4,720 contracts, a decrease of 2,222 contracts, while open interest rose by 848 contracts to 222,000.

Domestic Market Update

On the domestic front, the Shanghai Futures Exchange (SHFE) tin market surged during night trading, closing significantly higher. The most active SHFE tin contract (2502) settled at ¥253,600 per ton, up ¥5,420 per ton (+2.18%).

LME Inventory and Market Factors

As of January 20, LME tin inventory remained unchanged at 4,650 tons.

Shanghai Tin Futures Performance

According to the Yangtze River Tin Industry Network, SHFE tin futures opened higher across the board today. The main 2502 contract opened at ¥248,300, up ¥120, and by 9:05 AM, it was trading at ¥252,910, up ¥4,730. The market remained strong, supported by multiple factors:

1. Macroeconomic Factors:

• The U.S. dollar weakened after President Donald Trump took office and announced no immediate tariff measures on his first day.
• The broad metal market saw gains, with tin prices rising and maintaining high levels.

2. Supply Constraints:

• The Wa State tin mine has yet to resume production, raising supply concerns.
• With the Chinese New Year approaching, smelters in Yunnan and Jiangxi are gradually halting production, leading to lower operating rates and tight raw material supply.

3. Demand Outlook:

• Strong tin demand in soldering, tinplate, chemicals, and electronics.
• Growth in emerging technologies and base station construction is driving demand for tin-based solder and electronic components.
• The chemical industry, including PVC production, continues to support demand for tin compounds in catalysts and stabilizers.
• Expansion in the food and consumer goods packaging sector boosts tinplate consumption.
• Demand from float glass and superconducting technology is also contributing to market activity.
• NVIDIA’s latest product launch has further stimulated the semiconductor sector, supporting strong tin prices.

Market Outlook

Tin prices are expected to remain firm today, with further upside potential. (This analysis is for reference only and does not constitute investment advice.)