SHANGHAI, Feb. 1 (SMM) -- Today mainstream offers of EMM were in the RMB 14,800-15,000/mt range. Producers were unwilling to move goods, and purchase interests from downstream consumers were not high. Domestic EMM prices were stagnant.
According to sources, domestic EMM prices were almost approaching cost line at EMM producers, and producers were reluctant to move goods. According to a person-in-charge from Xiushan in Chongqing, since costs still stayed at high level, moving goods at current price level will make producers profitless. As the Chinese New Year holiday is coming, the producer will wait for a favorable price to move goods after the Chinese New Year Holiday.
It was also reported that #200 stainless steel markets still havn't improved yet, and some stainless steel producers in Ningbo, Dainan already halted production and was off on holiday. Demand of EMM from stainless steel mills was limited and purchasing volumes of EMM was also low. Traders also made purchases cautiously given the sluggish stainless steel market. According to a trader from Ningbo, EMM may continue to be sluggish after the Chinese New Year holiday based on current performance of stainless steel market, so the trader will only purchase goods in a small amount to control risk and will plan to make purchase when price trend is clear in the future.
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