[SMM Analysis] Operating Rates of Refined Tin Smelting Enterprises in Two Regions Remain Stable, Tin Concentrate TC May Decline

Based on in-depth market survey data analyzed by SMM, as of last Friday, the operating rates of refined tin smelting enterprises in Yunnan and Jiangxi provinces remained stable, with a combined rate of 66.96%. For smelting enterprises in the Yunnan region, their operating rates maintained relative stability last week, with most enterprises able to sustain continuous and steady production operations. However, considering the ongoing mining ban on tin ore in Myanmar, the supply situation of tin ore resources remains tight. Against this backdrop, we anticipate that smelting enterprises in Yunnan may face a slight decline in operating rates in the near future. Meanwhile, with further tightening of supply at the mining end, tin concentrate TC shows a downward trend, which will compress processing profits for smelters. As a result, some smelters may implement slight production cuts to control costs and maintain production operations. Last week, smelting enterprises in Jiangxi also demonstrated stability in operating rates, with most enterprises maintaining an orderly and steady production rhythm. Recently, the seasonal increase in certain industry scrap has provided some enterprises with opportunities for production growth. However, given the uncertainty surrounding the sustained stability of scrap supply, we expect related enterprises to return to previous production levels in their plans for this month. Considering the above factors comprehensively, we anticipate that the operating rates of smelting enterprises in Jiangxi may experience a certain degree of pullback in the future. In summary, based on a comprehensive analysis and forecast of the current situation, we believe that smelting enterprises in Yunnan and Jiangxi provinces may face a downward trend in operating rates in the future.