Bearish macro sentiment dragged tin prices lower on September 2. In spot trading, the price decline prompted more active restocking by downstream and end-user customers, with most intraday deals concentrated at Yuan 410,000–415,000 per tonne. A small number of traders sold out their spot inventories and then turned to pre-sales, and overall spot market activity was brisk. In the short term, the escalating U.S.-Iran conflict has increased risk aversion, but yesterday's surge in the yen led to a slight pullback in the USD, and the weaker-than-expected U.S. August ADP employment reading pointed to a softening labour market. If upcoming U.S. nonfarm payrolls data also disappoint, market pricing for a Fed rate hike in September could ease, which would lend support to tin prices. Overall, tin prices are expected to fluctuate with a weak bias in the near term, but the downside should be cushioned by raw material supply disruptions, resilient demand, and potential macro bullish factors.
