[SMM Analysis] Operating Rates of Smelters in Yunnan and Jiangxi Rebounded but No Significant Increase Expected Before Year-End

According to the in-depth survey data from SMM over the past week, as of Friday, the operating rates of refined tin smelters in Yunnan and Jiangxi provinces remained stable overall, maintaining at 65.11%. Specifically, the operating rates of smelters in Yunnan rebounded to previous levels last week. Further data from SMM indicated that with the resumption of production at some smelters, the overall industry operating rate indeed showed a warming trend, with most companies having resumed and maintained normal production status. However, most smelters still face tight raw material supply, with procurement becoming more difficult than before. Based on the current raw material market supply situation and industry trends, the operating rates of smelters in Yunnan are not expected to achieve significant growth in the future. In Jiangxi, the operating rates of smelters showed a slight increase last week. After equipment maintenance, some smelters have successfully resumed normal production, and most companies continue to maintain stable production status. It is worth noting that although the current tightness in scrap supply has not yet reached the level of tin concentrate supply tension, in the long run, its supply situation is unlikely to support further production increases for smelters in Jiangxi. In summary, due to the increasing tightness in the supply of tin concentrate and recycled tin raw materials, the production schedules of some smelters are expected to be adjusted downward in the future.