In July, the demand for soldering tin was relatively stable, and most companies replenished their inventories at low prices.

SMM News on August 15:

According to the SMM survey, domestic sample enterprises 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 enterprises' 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 enterprises experienced significant production reductions.

Notably, the significant decline in tin prices in July prompted many downstream enterprises 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 enterprises but also provided some room for inventory adjustments, enhancing their ability to withstand market fluctuations.

Looking ahead to the market trend in August, SMM predicts that tin solder enterprises' production activities will maintain the levels of July. This forecast is based on in-depth surveys of numerous downstream solder enterprises and the production plans of various end-users. In the current off-season for consumption, we expect the order volumes for tin solder enterprises to remain stable without significant fluctuations.

In summary, the solder industry will face certain market demand pressures in the near term, but enterprises 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.