[SMM Analysis] Operating Rates of Refined Tin Smelters in Yunnan and Jiangxi Drop Back Slightly, Raw Material Supply Continues to Tighten

According to detailed processing data obtained through in-depth market surveys by SMM, as of last Friday, we have observed a certain level of stability in the operating rates of refined tin smelters in Yunnan and Jiangxi provinces, although the rates have slightly decreased to 65.11%. Upon further analysis, we found that the operating rates of smelters in Yunnan experienced a slight decline last week. Despite most smelters in the region maintaining stable production and expecting to continue at current production levels, some have seen a slight drop in operating rates due to difficulties in raw material procurement. Considering the current supply and demand situation in the raw material market and industry development trends, we have made a cautious forecast: smelters in Yunnan are expected to largely maintain their current operating rates in the near term but may see a slight decline subsequently. Turning our attention to Jiangxi, smelters in this region also experienced a slight decline in operating rates last week. Most companies were able to maintain stable and orderly production, but the supply of scrap was gradually tightening. Last week, SHFE tin prices remained at low levels and showed volatility, with most smelters having a sentiment to stand firm on quotes. Meanwhile, trading activities in the spot market were relatively frequent, but the availability of spot cargo is gradually becoming tight. Based on these factors, we expect the subsequent market may push prices upward, thereby stimulating an increase in the supply of ore and scrap.