Photovoltaics and consumer electronics weakened, and the order volume of solder producers continued to decline in June.

According to the SMM survey, domestic sample producers' tin solder output in June was 8,580 mt, down 6.15% MoM. The total sample operating rate was 72.71%, a decrease of 6.65 percentage points from May. The total output for July is expected to be 8,455 mt, down 1.46% MoM, with the total sample operating rate expected to be 71.65%, down 1.06 percentage points from June.

In June, although downstream and end-user companies maintained a relatively stable production pace, the market showed some subtle changes. Notably, SHFE tin prices exhibited significant volatility during the month, undoubtedly affecting the decision-making process of market participants. According to our observations, downstream industry orders in June declined compared to May, a trend that can be interpreted from multiple perspectives.

First, we must consider the factor of the off-season. As the seasons change, end-user demand naturally weakens, affecting not only the purchase volume but also the purchase frequency. This cyclical change is a norm in market economics. Secondly, the significant rise in tin prices at the beginning of the year left a deep impression on the market. This dramatic price fluctuation led end-users to adopt more cautious purchasing strategies. To mitigate price risks, many companies chose to restock as needed and continuously shortened inventory cycles to ensure liquidity and reduce inventory risks.

In the solder industry, the market performance in June was relatively sluggish. Although some downstream companies' order volumes met expectations, overall, many solder producers felt the market chill. Particularly, with a significant decrease in orders from the photovoltaic industry, the downward trend in operating rates for some solder producers became more pronounced.

Looking ahead to the market trend in July, the latest SMM survey analysis predicts that the operating rate of tin solder producers may decline compared to June. This forecast is based on feedback from most downstream solder producers and the scheduled production expectations of various end-user companies. Against the backdrop of the off-season, tin solder producers' order volumes are expected to continue to show a slight decrease.