SHANGHAI, Feb. 2 -- Mainstream offers of EMM were in the RMB 14,800-14,900/mt range today. Traded prices as low as RMB 14,700/mt were already heard in the market yesterday. As the Chinese New Year holiday is approaching, some producers with cash flow pressure sold part of their goods at low prices.
It was reported that current price levels were already lower than cost levels at producers without their own mines. Some large producers with flexible cash flow moved limited amount of goods, while some small producers with cash flow pressure had to move goods at low prices for cash. According to a person-in-charge in Xiushan of Chongqing, "Current price levels are already lower than our costs, and we prepare to be off on holiday earlier than before. We moved part of our inventories for the labor costs during the Chinese New Year holiday." According to SMM sources, most producers moved goods with low prices thought exactly the same as the above person.
It was reported that some stainless steel mills and traders still purchased goods in a small amount. Some traders told that, current market was sluggish and purchase volumes from stainless steel mills were very low. EMM prices may continue to fall and they told that they'd wait lower prices to make purchase.
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