SunSirs: Tin Prices Fluctuated Widely in May and Bottomed out at the end of the Month

According to the monitoring of the commodity market analysis system of SunSirs: this month (May 1-30), the market of 1# tin ingots in East China fell, with the average market price at the beginning of the month at 261,240 RMB/ton and the average market price at the end of the month at 251,610 RMB/ton, a monthly decline of 3.89%.

The United States suddenly introduced a tariff policy that exceeded expectations, causing tin prices to fall sharply. Then, in April, the Bisie mining area in the Democratic Republic of the Congo announced the resumption of production, which further aggravated the downward trend of tin prices

On the supply side, the import volume of Myanmar tin ore has continued to decrease, and the tight supply situation at the upstream mining end has not been alleviated so far. Although the artificial intelligence boom has driven the growth of the downstream semiconductor industry of tin, this growth trend has gradually slowed down recently.

At present, the impact of the US tariff policy on market prices is gradually weakening. However, international macroeconomic policies may adjust and change rapidly in the future. Against this background, the tin price, which had risen sharply in the early stage, may show a wide range of fluctuations.

On the consumer side, after the May Day holiday, some processing companies at the downstream of the industrial chain began to resume work and production, and the demand for low-price inventory replenishment in the market has been released to a certain extent. However, the transaction of high-priced commodities is still relatively quiet. At the end of the month, the price of tin plummeted, and the transaction activity in the spot market increased significantly. After the sharp drop in the price of tin, some companies seized the opportunity to launch procurement actions. As the price continued to fall, the purchasing intention of downstream and terminal companies increased significantly. They made rigid purchases according to actual needs and appropriately replenished their inventories.

In summary, there are still concerns on the demand side, that is, in the context of global trade conflicts, the global economic growth rate faces the risk of decline, which brings great uncertainty to the demand for tin.

Although the resumption of production on the mine side and the trade conflicts between major countries have an adverse impact on the price of tin, the current strong performance of the actual demand side and the shortage of tin ore supply can still provide some support for the price of tin.

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