SMM

In July, the production of silver nitrate saw a slight pullback compared to June. The production of silver nitrate by domestic companies with production and sales qualifications was 730 mt in July, up 1.4% MoM but down 6.5% YoY. The production in July increased slightly MoM. In the first half of the month, due to rising prices, market procurement and stocking demand were not high. In the latter half of the month, as prices fell, the situation of market orders improved. However, since the operating rate of downstream companies remained relatively stable, market demand was relatively stable, and the procurement of raw materials was relatively stable, resulting in a steady increase in production. The YoY decrease in production was due to last year's market N-type reconstruction and market expansion, amplifying the demand in the industrial chain and generating a large demand for raw materials. However, the market expansion far exceeded end-user demand, resulting in a YoY decrease in production.