The Shanghai tin futures contract hit the daily limit up

On January 12th, the average market price in East China was 370130 yuan/ton, an increase of 5.58% compared to the previous trading day. The mainstream price range for 1 # tin ingots in the domestic spot tin market is 368000-372000 yuan/ton, with an average price of 370000 yuan/ton, an increase of 19570 yuan/ton compared to the previous trading day.

In the morning session, Shanghai tin futures showed a fluctuating upward trend, hitting the daily limit up in one fell swoop. The near and far month basis spread discount situation has significantly improved and the magnitude has narrowed significantly; After entering the second trading session, its price continued to rise, and the final main contract was closed at the limit up, with an increase of 8%, to 376920 yuan/ton.
Recently, the geopolitical situation has remained tense, causing deep concerns in the global capital market about the stability of resource supply. In this context, countries have accelerated their hoarding of strategic goods, thereby driving up the geopolitical risk premium of non-ferrous metals. The supply of tin resources is highly concentrated, and the supply from Myanmar has not yet returned to normal levels. The overall supply of tin ore remains tight. Boosted by positive macro sentiment, tin prices have shown a strong and sharp trend.
The spot market, stimulated by macro factors again, has further expanded its price increase. In the current short-term market, cautious sentiment continues to spread. Given the current weak performance of downstream consumption, even if prices continue to rise, the actual capacity of users to absorb them is relatively limited. Based on this, it is expected that the market situation will remain relatively weak in the short term, and continuous attention should be paid to the dynamic changes in inventory in the future.
In terms of follow-up, it is heard that small brands have a price range of around 400 yuan/ton for a flat price to a premium in February, while cloud fonts have a price range of around 700 yuan/ton for a premium in February, and cloud tin has a price range of around 1000 yuan/ton for a premium in February.