SHANGHAI, Mar. 24 (SMM) -- Today, mainstream offers of China's domestic EMM were in the RMB 15,100-15,300/mt range. Most EMM producers reported that trading sentiment was moderate ad downstream stainless steel mills still made purchases on an as-needed basis.
According to SMM survey, operating rates at mainstream #200 stainless steel mills were as high as 80%, but most producers only made purchases on an as-needed basis due to current sluggish stainless steel industry as well as frequent fluctuation of domestic EMM prices and few producers planned to replenish raw material stock in a large amount. Operating rates at small and medium sized producers in Ningbo, Dainan were not optimistic, and a portion of stainless steel mills had no competiveness in the market when the industry was sluggish and prices of raw material and costs were high, so most of them adopted a wait-and-see attitude before making any plan.
From the prospect of demand, operating rates at large stainless steel mill remained flat, and demand from these mills will prevent domestic EMM prices from felling significantly. However, whether domestic EMM prices will climb or not shall depend on operating rates at small and medium sized stainless steel mills. In this context, SMM believes that momentum for EMM prices to climb is weak based on the current operating rates at stainless steel mills, and recemt price increases of EMM were mainly pushed up by speculators.
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