On October 14, tin prices fell sharply. SHFE tin futures saw a significant increase in positions and trended lower starting from the night session, with active short capital entering the market to drive prices down. According to Mysteel's survey, the 1# tin ingot transaction price (15:30) was in the range of Yuan 378,000-380,000/tonne, averaging Yuan 379,000/tonne, down Yuan 18,000/tonne from the previous trading day. In terms of market trading, the sharp drop in tin prices has greatly boosted downstream restocking enthusiasm. Most enterprises entered the market to replenish raw material inventories, and some traders reported that their available supplies have been almost exhausted. However, smelters still maintain firm premiums, making it difficult to source suitable goods. Overall, spot market trading activity has improved. Looking ahead, rising inflation and interest rate expectations, elevated U.S. Treasury yields, and lackluster performance in the semiconductor sector will impose certain downward pressure on tin prices. In the short term, tin prices are expected to run weak amid strong bearish factors. However, after a sharp price drop, downstream enterprises are projected to show strong willingness to restock on dips, and the tightening spot market will offer certain support to tin prices.
