SHFE tin prices are consolidating at high levels, and downstream enterprises may be waiting for a better restocking opportunity.【SMM】
In this week's SHFE tin market, prices exhibited a trend of high-level fluctuations. Specifically, starting from the beginning of the week, SHFE tin prices began at a benchmark of 267,000 yuan/mt and maintained a high-level oscillation throughout the week, stabilizing around 265,000 yuan/mt by Friday. From the perspective of the spot market, due to the consistently high tin prices in previous weeks, downstream purchasing companies have shown a more cautious attitude towards procurement. Although many end-users took the opportunity to actively purchase and effectively replenish their inventories during the previous low tin price period, the need to replenish inventories has gradually emerged after recent continuous consumption. However, it is worth noting that since tin prices have not seen a significant correction, some downstream and end-users are only meeting immediate rigid demand and have not engaged in large-scale procurement. Nevertheless, some downstream companies have opted for small-scale inventory replenishment. In the spot market, the trading atmosphere is somewhat sluggish, with most traders maintaining relatively low transaction volumes. This phenomenon not only reflects the market's cautious and hesitant attitude towards high-priced tin but also suggests that downstream companies may be waiting for more favorable purchasing opportunities. Based on the above analysis, we predict that if SHFE tin prices see a moderate correction next week, it could stimulate a stronger inventory replenishment desire among downstream and end-users. At that time, the market may witness a relatively concentrated purchasing surge.
