SMM

[SMM Morning Meeting Summary: TSMC Prioritizes Investment in the US to Address Chip Tariff Threats, Tin Prices Expected to Hover at Highs] Last week, in terms of international macroeconomic developments, TSMC prioritized investment in the US to address chip tariff threats, postponing the start of construction for its second chip factory in Japan. Additionally, the US and the EU discussed automotive tariff issues, aiming to protect the EU automotive industry from high import tariffs. Domestically, the overall supply of tin ore in the market tightened, with some smelters in major production areas like Yunnan experiencing reduced supply due to maintenance or production cuts. On the demand side, after the installation rush in the PV industry ended, orders declined, and the operating rates of some producers dropped; the electronics industry entered the off-season, with end-users exhibiting strong wait-and-see sentiment, and orders only meeting immediate needs; demand in other sectors such as tinplate and chemicals remained stable, without unexpected growth. In the spot market, downstream enterprises gradually concluded their restocking activities after the price rebound and began to adopt a wait-and-see attitude. Traders reported sluggish transactions. Overall, it is expected that tin prices will hover at highs and fluctuate rangebound next week. Investors are advised to operate cautiously and pay attention to changes in domestic and overseas policies as well as market demand dynamics. ...