[SMM Analysis] "September-October peak season" aids the recovery of the tin solder industry, with production steadily increasing to meet the peak season

According to SMM's processing data based on market exchanges, the tin solder production of domestic sample enterprises in October showed a 2.01% increase MoM compared to September. Meanwhile, the total sample operating rate also slightly increased to 75.6%. However, entering November, we forecast for a slight increase in total sample production, expected to rise by 0.77% MoM. Correspondingly, the total sample operating rate in November is also expected to rise to 76.19%.

Entering October, the tin solder industry faced a particularly complex market environment due to multiple external factors. Following the inventory preparation surge in September, the production increase and decrease trends in October attracted widespread attention in the industry.

In September, most solder enterprises had already captured signs of recovery in the downstream and end-use markets. Driven by pre-holiday inventory preparation, the number of orders for enterprises saw a certain increase, and this growth momentum continued into October.

However, it is worth noting that due to the holiday period, the production capacity of some enterprises was somewhat limited, making the production schedule in October relatively more cautious. Fortunately, the decline in tin prices in late October further stimulated end-user enterprises to accelerate inventory replenishment, thereby boosting the order growth of downstream solder enterprises, which to some extent compensated for the partial demand overdraft caused by early inventory preparation in September.

Looking ahead, based on the current market trends and order situation, the order volume of tin solder enterprises in November is expected to remain at a relatively optimistic level. Overall, we expect the industry's production to remain stable, with a possibility of a slight increase.