According to the processing data from in-depth market surveys conducted by SMM, as of Friday this week, the operating rates of refined tin smelters in Yunnan and Jiangxi, two major tin-producing provinces, have declined to relatively low levels, with a combined operating rate of 47.05%. The operating rate of smelters in Yunnan remained unchanged from the previous week. Some smelters have halted production for maintenance, while others have initiated phased production cuts to address the current shortage of raw material supply. During the same period, the operating rate of smelters in Jiangxi dropped significantly, consistently remaining lower than that in Yunnan and decreasing by approximately 35 percentage points compared to the beginning of the year. Several smelters began halting production for maintenance this month to alleviate the tight supply of scrap. The rising recycling costs of scrap, coupled with the decline in tin concentrate treatment charges (TCs), have driven up production costs for enterprises, eroding the profits of secondary tin smelting. Meanwhile, considering the stalled production resumption progress in the Wa region of Myanmar, combined with the impact of the rainy season on transportation, tin ore imports from the Wa region are expected to continue declining this month. Additionally, due to the transportation ban imposed by relevant Thai authorities, southern Myanmar will also see a reduction of 500-1000 mt (metal content) in tin ore supply. In summary, given the decline in the supply of tin ore and scrap, smelters in Yunnan and Jiangxi are likely to maintain low operating rates or continue to experience a downward trend in the coming weeks.
