[SMM Analysis] July Tin Solder Demand Remained Stable, Most Companies Replenished Inventory at Low Prices

According to the SMM survey, domestic sample companies produced 8,454 mt of tin solder in July, down 1.47% MoM. The total sample operating rate was 71.64%, down 1.07 percentage points from June. The total production for August is expected to be 8,495 mt, up 0.48% MoM, with an expected operating rate of 71.99%, up 0.35 percentage points from July.

In the solder industry, the market dynamics in July were relatively stable, lacking significant activity. Although some downstream companies' order volumes met expectations, the overall industry felt a noticeable weakening in market demand. Particularly in the photovoltaic industry, where order volumes continued to shrink, some solder companies' production activities were significantly affected, with a more pronounced reduction.

Notably, the significant decline in tin prices in July prompted many downstream companies to seize the opportunity to replenish their inventories, effectively alleviating the tight inventory situation from H1. This move not only improved the inventory status of companies but also provided some room for inventory adjustment, enhancing their ability to withstand market fluctuations.

Looking ahead to August, based on SMM forecast, tin solder companies' production activities are expected to maintain the levels of July. This forecast is based on in-depth surveys of many downstream solder companies and the production plans of various end-users. In the current off-season environment, we expect the order volumes for solder companies to remain stable without significant fluctuations.

In summary, the solder industry will face certain market demand pressures in the near term, but companies can maintain stable operations amid market fluctuations through flexible inventory management strategies. Meanwhile, the industry needs to closely monitor market dynamics to respond to potential challenges and opportunities.