[SMM Analysis] The operating rates of smelters in Yunnan and Jiangxi provinces have rebounded slightly, but overall production enthusiasm remains low

[SMM Analysis: Operating Rates of Smelters in Yunnan and Jiangxi Rebound Slightly, but Overall Production Enthusiasm Remains Low]: According to the processing data obtained by SMM through in-depth market surveys, the weekly operating rates of refined tin smelters in Yunnan and Jiangxi have continued to rebound slightly in recent times. As of this week, the combined operating rate of the two provinces has risen to 50.97%. The resumption of production in the Wa region of Myanmar's mining area has stalled, coupled with transportation difficulties during the rainy season, leading to a continuous decline in tin ore imports from the Wa region. Meanwhile, due to Thailand's transportation ban in southern Myanmar, the monthly supply of tin ore has decreased by 500-1,000 mt (metal content). Pressure on Treatment Charges (TCs): The treatment charges for 40% grade tin concentrates in Yunnan have fallen to historical lows, approaching the cost line of smelters, severely squeezing profit margins. Some enterprises have been forced to cut production or undergo maintenance, resulting in a relatively low overall production enthusiasm. Recently, a smelter in Jiangxi has completed its shutdown for maintenance and is gradually returning to normal operations, leading to a slight rebound in the operating rate in Jiangxi. Shortage of Recycled Tin Raw Materials in Jiangxi: Jiangxi smelters primarily rely on scrap tin recycling. Transmission Blockages in End-use Industries: Due to cost pressures, the electronics and home appliance industries have slowed down their production rhythms, resulting in a decrease in scrap circulation and forming a negative feedback loop. The raw material shortage is difficult to alleviate in the short term, coupled with the off-season in consumption. It is expected that the operating rates of smelters in Yunnan and Jiangxi may continue to fluctuate at lows or even decline further.