[SMM Analysis] Operating Rates of Refined Tin Smelting Enterprises in Two Regions Continue to Decline, TCs Maintain Downward Trend

According to SMM processed data based on in-depth market surveys, we observed that as of last Friday, the operating rates of refined tin smelting enterprises in Yunnan and Jiangxi provinces dropped back slightly, with a combined figure of 64.28%. For smelting enterprises in the Yunnan region, their operating rates dropped back slightly last week, with some enterprises managing to maintain continuous and stable production operations. However, considering the ongoing mining ban policy on Myanmar tin ore, the supply of tin ore resources remains tight. Some smelting enterprises have already started planning to reduce their production schedules. 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 TCs are showing a downward trend, which will compress the processing profits of smelters. Last week, the operating rates of smelting enterprises in Jiangxi also pulled back slightly. The seasonal increase in certain industry scraps has nearly been exhausted, and related enterprises' production plans for this month are expected to return to previous levels. Coupled with the tightening year-end scrap supply, some smelting enterprises are facing difficulties in raw material procurement. Considering these multiple factors, we expect 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 the operating rates of smelting enterprises in Yunnan and Jiangxi provinces are likely to maintain a downward trend in the future.