Analysis on EMM Price Changes on the Basis of Operating Rates at #200 Stainless Steel Mills-Shanghai Metals Market

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Analysis on EMM Price Changes on the Basis of Operating Rates at #200 Stainless Steel Mills

SMM Insight 02:37:29PM Mar 24, 2010 Source:SMM

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.

To contact the writer on this report: jianghanmei@smm.cn

 

Copyright © SMM. All Rights Reserved

None of this material may be used for any commercial or public use in any forms or means, without the prior written consent of SMM. For reproduction issue, please contact us by email: service.en@smm.cn

 

Analysis on EMM Price Changes on the Basis of Operating Rates at #200 Stainless Steel Mills

SMM Insight 02:37:29PM Mar 24, 2010 Source:SMM

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.

To contact the writer on this report: jianghanmei@smm.cn

 

Copyright © SMM. All Rights Reserved

None of this material may be used for any commercial or public use in any forms or means, without the prior written consent of SMM. For reproduction issue, please contact us by email: service.en@smm.cn