China EMM Output In September And Forecast For October

SHANGHAI, Oct 10 (SMM) –

China produced 80,900 mt of EMM in September, down 2.61% MoM and 103.56% YoY, according to SMM statistics. EMM output in the first nine months of 2023 was some 776,700 mt, up 30.9% year-on-year. September saw stable scheduled production at most EMM plants and restart of some EMM plants from maintenance. However, two south China-based EMM producers’ production cutbacks and halts were cited as a major factor fuelling the drop in EMM output in September. On the demand side: Rising output of crude stainless steel in China was reported in September and replenishing demand was monitored during the National Day holiday. Therefore, there were more demand from steel mills. However, given EMM spot and futures prices, EMM was still lack of advantages among raw material buyers. EMM market was under pressure amid rigid demand from downstream sectors.

In October, an industry meeting decided that EMM prices will fluctuate along with market changes, members shall operate only 70% of their capacity each month.. If the production is carried out throughout the month, then the goods produced for 9 days will be delivered to the public warehouses, with transaction prices of 9,000 yuan/mt. According to scheduled production of EMM plants, EMM supply in October is expected to be approximately 97,600 mt.