SHANGHAI, Apr. 2 (SMM) -- Tight supply of ore powder leads to high costs at EMM producers and temporary power supply restriction results in stable operating rates at EMM producers. Limited supply as well as relatively strong support from high costs spurs long position sentiment in EMM market. Meanwhile, price hikes of imported oxide manganese ore and nickel all push up bullish sentiment of EMM prices.
However, the bullish sentiment of EMM will be depressed by temporarily unimproved operating rates at stainless steels mills, and low operating rates at alloy producers due to power supply restriction also lead to limited purchases of EMM. In addition, although exporting prices have increased to certain extend, it still needs patient for the market becoming bullish.
In this context, SMM believes that EMM prices will temporarily move narrowly in the RMB 15,200-15,500/mt range in the short term as demand hasn't improved much, and are expected to rise further spurred by positive news from neighboring market.
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